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Culver House Inc. had the following condensed statement of financial position at December 31, 2019: CULVER HOUSE INC. Statement of Financial Position December 31, 2019
Culver House Inc. had the following condensed statement of financial position at December 31, 2019: CULVER HOUSE INC. Statement of Financial Position December 31, 2019 Cash $10,950 Current liabilities $14,750 Current assets (non-cash) 34,450 Long-term notes payable 30,950 Bond investment at amortized cost 40,850 Bonds payable 32,350 Plant assets (net) 57,750 Common shares 80,850 Land 38,850 Retained earnings 23,950 $182,850 $182,850 Culver House Inc. follows IFRS and chooses to classify dividends paid as financing activities and interest paid as operating activities on the statement of cash flows. During 2020, the following occurred: 1. Culver House Inc. sold part of its investment portfolio in bonds for $17,600, resulting in a gain of $420. 2. Dividends totalling $17,200 were paid to shareholders. Dividends paid are treated as financing activities. 3. A parcel of land, to be used as a parking lot, was purchased for $4,000. 4. Common shares were issued for cash totalling $19,000. 5. Bonds payable of $9,400 were retired at par. 6. Equipment was purchased through the issuance of $32,000 of bonds. 7. Net income for 2020 was $53,000 after allowing for depreciation on Culver House Inc's plant assets of $13,850. The amount of interest paid during 2020 was $4,250 and the amount of income taxes paid was $19,800. 8. Both current assets (other than cash) and current liabilities remained at the same amount. Prepare a statement of cash flows for 2020 using the indirect method. (Show amounts that decrease cash flow with either a-sign e.g. -15,000 or in parenthesis e.g. (15,000).) CULVER HOUSE INC. Statement of Cash Flows (Indirect Method) TA $ Adjustments to reconcile net income to net cash provided by operating activities:
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