Financial statements for Discovery Company follow: 20X3 $ 26, 100 799, 400 621,300 1,446,800 244,800 1,973,300 (1,433,200) 158, 400 $ 2,390, 100 DISCOVERY COMPANY Statement of Financial Pagition Aa OL 31 December 20X4 Assets Current assets: Caah $ 30,000 Accounts receivable 835, 100 Inventory 681,400 Total current assets 1,546,500 Land 567, 700 Plant and equipment 2,854,900 Le33: Accumulated depreciation (1,453, 100) Patents 150, 700 Total assets $ 3, 666, 700 Liabilities and shareholders' equity Liabilities: Current liabilities: Accounts payable 470,300 Salaries and wages payable 74,100 Income tax payable 173,300 Total current liabilities 717700 Long-term debt 1,798, 600 Total liabilities 2,518,300 Shareholders equity: Gommon share3no-par 296, 700 Retained earnings 858,700 Total shareholders' equity 1150) 400 Total liabilities and shareholders equicy 63, 666, 700 $ 6 516, 200 68,600 181,700 746,500 970, 800 1, 717,300 293, 800 379,000 62,800 $ 2,390), 100 6,037,200 IT SEXVERY COMPANY Statement of Comprehensive Income Eor the entended 31 Decembed 20XA Sales revenue Les expensee: Coat of goods sold $3,330, 200 selling and administrative expenses 889, 100 Depreciation and amortization 301,900 Rent expense 24,500 Miscellaneous expensea 232,000 Total expenses Other revenues and expenses: Interest expense 56, 600 Gain on sale of equipment (9,700) Loss on debt retirement 17,800 Earnings before income tax Income tax expense Net earnings and comprehensive income 4,777,700 64,700 1,194, 800 500, 500 6 686, 300 Additional Information: a. The company sold equipment that had an original cost of $476,500 and a net book value of $202,200. Other equipment was purchased for cash. Patent amortization was $7,700. b. Long-term debt with a face value of $770,000 was repaid during the year and other long-term debt was issued at a lower inter c. The company issued shares for land during the period. Other common shares were retired (bought back and cancelled) at boc value d. Assume unexplained changes in accounts stem from logical transactions. rate Required: Prepare the SCF, using the indirect method. Use the two-step method for operations. (Deductible amounts and Cash outflows Should be indicated with minus sign.) 1. Prepare the SCF, using the indirect method Use the two-step method for operations. (Deductible amounts and Cash should be indicated with minus sign.) DISCOVERY.COM Statement or asli Flows For the vear ended 31 December 20X4 Operating activities: Adjustments for non-cash items: 0 Total adjustment Changes in net working capital: $ 0 Investing activities Total adjustment Changes in net working capital 0 $ 0 Investing activities 0 Financing activities. 0 Cash balance beginning of the year Cash balance end of the year S 0 2. Prepare the SCF, using the direct method to present cash flows in the operating activities section. (Deductible outflows should be indicated with minus sign.) DISCOVERY COMPANY Statement of Esh Flows For the year ended 31 December 20X4 Operating activities: $ 0 Investing activities 0 Financing activities 1 of 2 !!! Next > be Ch for the year December 20 Operating activities: $ 0 Investing activities 0 Financing activities: 0 Cash balance beginning of the year Cash balance end of the year
