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Flint Inc. applies ASPE and had the following statement of financial position at the end of 2019: Flint Inc. Statement of Financial Position December 31,
Flint Inc. applies ASPE and had the following statement of financial position at the end of 2019: Flint Inc. Statement of Financial Position December 31, 2019 Assets Cash $ 50,500 Accounts receivable 90,000 Inventory 82,000 Total current assets 222,500 Machinery (net) 125,000 Trademarks 20,000 Total assets $ 367,500 93,000 93,000 85,000 178,000 Liabilities and Shareholders' Equity Accounts payable Total current liabilities Long-term debt Total liabilities Shareholders' equity Common shares Retained earnings Total shareholders' equity Total liabilities and shareholders' equity 100,000 89,500 189,500 367,500 $ During 2020, the following occurred: 1 Flint Inc. sold some of its trademarks. The trademarks had an unlimited useful life and a cost of $10,000. They were sold for proceeds of $20,000. 2 Machinery was purchased in exchange for long-term debt of $40,000. 3 Long-term debt in the amount of $14,700 was retired before maturity by paying $14,700 cash 4 An additional $13,000 in common shares was issued 5 Dividends totaling $15,000 were declared and paid to shareholders. Dividends paid are treated as financing activities. 6 Net income for 2020 was $44,000 after allowing for depreciation of $19,000. 7 Machinery with a carrying value of $18,000 was sold for a gain of $7,000. 8 At December 31, 2020, Cash was $68,800; Accounts Receivable was $111,000; Accounts Payable was $83,000 and Inventory was $107,000 Prepare a statement of cash flows for the year ended December 31, 2020, using the indirect method. (19.5 marks)
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