d A5-20 Statement of Cash Flows (LO5.5): 31 December 20X9 Chapter 5 The Statement of Cash Flows 297 The following data was derived from the accounting records of NewFort Ltd. at year-end, Statement of Financial Position As of 31 December Debits Cash Accounts receivable 20X9 20X8 $ 21,000 $ 12,000 Inventory 296,000 196,000 Long-term investments 362,000 393,000 Property, plant, and equipment 91,000 Total debits 1,196,000 960,000 Credits $1,875,000 $1,652,000 Accumulated depreciation Accounts payable $470,000 $ 576,000 Interest payable 154,500 191,500 16,500 Deferred tax Bonds payable 13,500 71,000 47,000 350,000 Common shares 180,000 480,000 Retained earnings 250,000 333,000 394,000 Total credits $1,875,000 $1,652,000 Statement of Comprehensive Income Year ended 31 December 20X9 Sales Cost of goods sold Depreciation expense Remaining expenses Loss on sale of operating assets Gain on sale of investments Net earnings and comprehensive income $2,457,000 (1,689,000) (62,000) (572,000) (9,000) 36,000 $ 161,000 Additional information: a. Sold plant assets for cash; cost, $252,000; two-thirds depreciated. b. Purchased plant assets for cash. c. Purchased plant assets and exchanged unissued bonds payable of $190,000 in payment. d. Sold the long-term investments for cash. e. Retired bonds payable at maturity date by issuing common shares, $65,000. f. Other changes in asset, liability, and equity accounts flow from logical sources. 5 The Statement of Cash Flows Required: 1. Prepare the SCF, using the two-step indirect method to present the operations section. Omit separate disclosure of cash paid for interest and income tax in the operating activities section of the SCF. Include a list of non-cash transactions that would be presented in the disclosure notes. 2. Prepare the operating activities section of the SCF using the direct method. eadsheet (LO5.5):