Exercise 5-17

The comparative statement of financial position of Concord Inc. as at June 30, 2017, and a statement of comprehensive income for the 2017 fiscal year follow:

CONCORD INC.

Statement of Financial Position

June 30, 2017June 30Assets20172016Cash$16,400$31,160Accounts receivable70,52060,680Inventory84,46083,640Prepaid expenses1,6404,920Fair ValueOCI Investments38,54036,900Equipment141,860130,380Accumulated depreciation(28,700)(20,500)Total$324,720$327,180Liabilities and Shareholders' EquityAccounts payable$94,300$82,000Income taxes payable1,6402,460Dividends payable4,1000Long-term notes payable68,88097,580Common shares25,42019,680Retained earnings121,360118,080Accumulated other comprehensive income9,0207,380Total$324,720$327,180

CONCORD INC.

Statement of Comprehensive Income

For the Year Ended June 30, 2017Net sales$264,860Cost of goods sold143,500Gross profit121,360Operating expenses98,400Income from operations22,960Interest expense7,380Income before income taxes15,580Income taxes4,920Net income10,660Other comprehensive incomeUnrealized gain on FV-OCI investments1,640Comprehensive income$ 12,300

Additional information:

1.Concord follows IFRS. Assume that interest is treated as an operating activity for purposes of the statement of cash flows.2.Operating expenses include $8,200 in depreciation expense.3.There were no disposals of equipment during the year.4.Common shares were issued for cash.5.During the year, Concord acquired $6,560 of equipment in exchange for long-term notes payable.

(a)

Make the statement of cash flows for Concord for the year ended June 30, 2017, using the indirect method along with any necessary note disclosure.(Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)