EXERCISE 20-4 Below is the comparative balance sheet for Lambrinetta Industries Ltd.: Lambrinetta Industries Ltd. Balance...

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EXERCISE 20-4 Below is the comparative balance sheet for Lambrinetta Industries Ltd.: Lambrinetta Industries Ltd. Balance Sheet Assets: 2021 December 31 2020 Cash $ 32,300 $ 40,800 Accounts receivable 79,900 107,100 Investments-trading 88,400 81,600 Land 86,700 49,300 Plant assets 425,000 345,100 Accumulated depreciation-plant assets (147,900) (136.000) Total assets Liabilities and Equity 564,400 487.900 Accounts payable $ 18,700 $ 6,800 Current portion of long-term note 8,000 10,000 Long-term note payable Common shares Retained earnings 119,500 75,000 130,900 81,600 287,300 314,500 Total liabilities and equity $ 564,400 $ 457,900 Additional information: i. Net income for the year ended December 31, 2021 was $161,500. ii. Cash dividends were declared and paid during 2021. ii. Plant assets with an original cost of $51,000, and with accumulated depreciation of $13,600, were sold for proceeds equal to book value during 2021. iv. The investments are reported at their fair value on the balance sheet date. During 2021, investments with a cost of $12,000 were purchased. No other investment transactions occurred during the year. Fair value adjustments are reported directly on the income statement. Exercises 373 v. In 2021, land was acquired through the issuance of common shares. There were no other land transactions during the year. The balance of the common shares issued were for cash. vi. The company's policy is to classify interest received and paid, and dividends received, in operating activities, and to classify dividends paid in financing activities. vi. Note that payable arose from a single transaction. vil. Changes in other balance sheet accounts resulted from usual transactions and events Required: Using the indirect method, prepare the statement of cash flows for the year ended December 31, 2021, in good form, including all required disclosures identified in the chapter material. The company follows ASPE EXERCISE 20-4 Below is the comparative balance sheet for Lambrinetta Industries Ltd.: Lambrinetta Industries Ltd. Balance Sheet Assets: 2021 December 31 2020 Cash $ 32,300 $ 40,800 Accounts receivable 79,900 107,100 Investments-trading 88,400 81,600 Land 86,700 49,300 Plant assets 425,000 345,100 Accumulated depreciation-plant assets (147,900) (136.000) Total assets Liabilities and Equity 564,400 487.900 Accounts payable $ 18,700 $ 6,800 Current portion of long-term note 8,000 10,000 Long-term note payable Common shares Retained earnings 119,500 75,000 130,900 81,600 287,300 314,500 Total liabilities and equity $ 564,400 $ 457,900 Additional information: i. Net income for the year ended December 31, 2021 was $161,500. ii. Cash dividends were declared and paid during 2021. ii. Plant assets with an original cost of $51,000, and with accumulated depreciation of $13,600, were sold for proceeds equal to book value during 2021. iv. The investments are reported at their fair value on the balance sheet date. During 2021, investments with a cost of $12,000 were purchased. No other investment transactions occurred during the year. Fair value adjustments are reported directly on the income statement. Exercises 373 v. In 2021, land was acquired through the issuance of common shares. There were no other land transactions during the year. The balance of the common shares issued were for cash. vi. The company's policy is to classify interest received and paid, and dividends received, in operating activities, and to classify dividends paid in financing activities. vi. Note that payable arose from a single transaction. vil. Changes in other balance sheet accounts resulted from usual transactions and events Required: Using the indirect method, prepare the statement of cash flows for the year ended December 31, 2021, in good form, including all required disclosures identified in the chapter material. The company follows ASPE