Current Attempt in Progress The statement of income and unclassified statement of financial position for Ivanhoe, Inc. follow: IVANHOE, INC. Statement of Financial Position December 31 Assets 2021 2020 Cash $97,200 $48,000 122,000 115,000 Trading investments Accounts receivable 79,500 42,500 120,400 93,300 2,100 1,700 18,100 27,000 Inventory Estimated inventory returns Prepaid expenses Equipment Accumulated depreciation Total assets 308,000 284,500 (47,500) (52,200) $699,800 $559,800 $98,500 $77,300 10,000 6,400 Liabilities and Shareholders' Equity Accounts payable Property tax payable Refund liability Bank loan payable-current portion Bank loan payable-noncurrent portion Common shares 1.200 900 89,000 34,100 130,600 34,100 185,000 220,000 Retained earnings 247,000 125,500 Total liabilities and shareholders' equity $699,800 $559,800 IVANHOE, INC. Statement of Income Year Ended December 31, 2021 Sales $550,300 189,450 Cost of goods sold Gross proft 360,850 Operating expenses 116,460 Income from operations 244,390 $7,000 Other income and expenses Unrealized gain on trading investments Interest expense Income before income tax Income tax expense (4,750) 2.250 246,640 44,000 Net income $202,640 Additional information regarding 2021: 1. 2. 3. 3. 4 . 5. Prepaid expenses and property tax payable relate to operating expenses. New equipment costing $82,000 was purchased for $24,800 cash and a $57,200 long-term bank loan payable. Old equipment having an original cost of $58,500 was sold for $1,100. Accounts payable relate to inventory suppliers. Some of the bank loan was repaid during the year. A dividend was paid during the year. Operating expenses include $46,700 of depreciation expense and a $6,000 loss on disposal of equipment. Common shares were issued for $52,000 cash during the year and some common shares were bought back and retired at the cost they were originally issued at. 6 6. 7. 8. 8. (a) Prepare the statement of cash flows, using the indirect method. (Show amounts that decrease cash flow with either a - signe.g.-15,000 or in parenthesis eg. (15,000).) IVANHOE, INC. Statement of Cash Flows $ UF Adjustments to reconcile net income to V > $