Exercise 13-12 (Direct Method) The comparative unclassified statement of financial position for Puffy Ltd. follows: PUFFY LTD. Statement of Financial Position December 31 Assets Cash Accounts receivable Merchandise inventory Land Equipment Acc Total assets 2015 2014 $52,380 $23,230 75,580 69,950 189,710 194,340 69,100 104,280 267,650 195,600 (66,900) (30,430) $587,520 $556,970 umulated depreciation Liabilities and Shareholders' Equity Accounts payable Bank loan payable Common shares Retained earnings Total liabilities and shareholders' equity $587,520 $40,960 48,330 140,450 201,740 201,330 174,890 204,780 132,010 $556,970 Additional information: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Profit was $107,580 Sales were $974,830 Cost of goods sold was $752,660 Operating expenses were $42,280, exclusive of depreciation expense Depreciation expense was $36,470 Interest expense was $14,130 Income tax expense was $26,070 Land was sold at a gain of $4,360 No equipment was sold during the year. $61,290 of the bank loan was repaid during the year Common shares were issued for $26,440