Question
CHINATOWN INDUSTRIES LTD. Income Statement Year Ended December 31, 2021 Revenue$920,000 Expenses Cost of goods sold$ 493,500 Salaries 189,000 Depreciation expense25,000 Other operating expenses73,500 Interest
CHINATOWN INDUSTRIES LTD.
Income Statement
Year Ended December 31, 2021
Revenue$920,000
Expenses
Cost of goods sold$ 493,500
Salaries 189,000
Depreciation expense25,000
Other operating expenses73,500
Interest expense13,000
Income taxes18,000
812,000
Profit$108,000
CHINATOWN INDUSTRIES LTD.
Balance Sheet
December 31
20212020
Assets
Cash $ 14,000$10,000
Accounts receivable 29,00024,000
Inventory 13,50017,000
Prepaid expenses 2,0002,000
Land 250,000250,000
Building and equipment 497,000422,000
Accumulated depreciation (150,000)(125,000)
Total assets $ 655,500$600,000
Liabilities and Shareholders' Equity
Accounts payable $ 25,900 $22,400
Taxes payable 1,000 3,000
Interest payable 1,500 2,500
Salaries payable 8,000 5,000
Long-term debt 234,000 260,000
Common shares 120,000 100,000
Retained earnings 265,100 207,100
Total liabilities and shareholders' equity $ 655,500 $600,000
Additional information:
1.No new long-term debt was taken during the year
.2.New equipment was purchased, and none was sold.
3.Common shares were issued for cash.
4.Cash dividends were paid to common shareholders.
Instructions
Make the cash flow statement for 2021, using the indirect method.
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