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Current Attempt in Progress A comparative statement of financial position for Whispering Winds Industries Inc. follows: WHISPERING WINDS INDUSTRIES INC. Statement of Financial Position December
Current Attempt in Progress
A comparative statement of financial position for Whispering Winds Industries Inc. follows:
WHISPERING WINDS INDUSTRIES INC. Statement of Financial Position December 31, 2020 | |||||
December 31 | |||||
Assets | 2020 | 2019 | |||
Cash | $22,900 | $35,900 | |||
Accounts receivable | 113,000 | 55,400 | |||
Inventory | 239,000 | 208,000 | |||
Land | 84,000 | 125,000 | |||
Equipment | 274,000 | 218,000 | |||
Accumulated depreciationequipment | (70,500 | ) | (43,600 | ) | |
Total | $662,400 | $598,700 | |||
Liabilities and Shareholders Equity | |||||
Accounts payable | $52,100 | $60,800 | |||
Bonds payable | 199,200 | 234,200 | |||
Common shares | 215,000 | 180,000 | |||
Retained earnings | 196,100 | 123,700 | |||
Total | $662,400 | $598,700 |
Additional information:
1. | Net income for the fiscal year ending December 31, 2020, was $147,000. | |
2. | Cash dividends of $74,600 were declared and paid. Dividends paid are treated as financing activities. | |
3. | Bonds payable amounting to $35,000 were retired through issuance of common shares. | |
4. | Land was sold at a gain of $3,000. | |
5. | No equipment was sold during the year. |
(a) Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
(a Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow using either a negative sign preceding the number eg.-45 or parentheseseg. (450) WHISPERING WINDS INDUSTRIES INC Statement of Cash Flows Adjustments to reconcile net income to net cash provided by operating activities: > 1 > > > During the year, Whispering Winds retired S in bonds payable by issuing common sharesStep by Step Solution
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