FLOUNDER INC. Statement of Comprehensive Income For the Year Ended June 30, 2017 Net sales $ 284,240 Cost of goods sold 154,000 Gross profit 130,240 Operating expenses 105,600 Income from operations 24,640 Interest expense 7,920 Income before income taxes 16,720 Income taxes 5,280 Net income 11,440 Other comprehensive income Unrealized gain on FV-OCI investments Comprehensive income 1,760 $ 13,200 Additional information: 1. 2. 3. Flounder follows IFRS. Assume that interest is treated as an operating activity for purposes of the statement of cash flows. Operating expenses include $8,800 in depreciation expense. There were no disposals of equipment during the year. Common shares were issued for cash. During the year, Flounder acquired $7,040 of equipment in exchange for long-term notes payable. 4. 5. A Prepare the statement of cash flows for Flounder 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).) FLOUNDER INC. Statement of Cash Flows For the Month Ended June 30, 2017 Cash Flows from Operating Activities Net Income / (Loss) $ Adjustments to reconcile net income to net cash provided by operating activities: Depreciation Expense $ Increase in Accounts Receivable Increase in Inventory Decrease in Prepaid Expenses Increase in Accounts Payable Decrease in Income Taxes Payable Net Cash Provided by Operating Activities Decrease in Income Taxes Payable Net Cash Provided by Operating Activities Cash Flows from Investing Activities Purchase of Equipment Net Cash used by Investing Activities Cash Flows from Financing Activities Payment of Cash Dividends Repayment of Notes Payable Issuance of Common Shares Net Cash used by Financing Activities Net Decrease in Cash Cash at Beginning of Year Cash at End of Year $ FLOUNDER INC. Statement of Comprehensive Income For the Year Ended June 30, 2017 Net sales $ 284,240 Cost of goods sold 154,000 Gross profit 130,240 Operating expenses 105,600 Income from operations 24,640 Interest expense 7,920 Income before income taxes 16,720 Income taxes 5,280 Net income 11,440 Other comprehensive income Unrealized gain on FV-OCI investments Comprehensive income 1,760 $ 13,200 Additional information: 1. 2. 3. Flounder follows IFRS. Assume that interest is treated as an operating activity for purposes of the statement of cash flows. Operating expenses include $8,800 in depreciation expense. There were no disposals of equipment during the year. Common shares were issued for cash. During the year, Flounder acquired $7,040 of equipment in exchange for long-term notes payable. 4. 5. A Prepare the statement of cash flows for Flounder 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).) FLOUNDER INC. Statement of Cash Flows For the Month Ended June 30, 2017 Cash Flows from Operating Activities Net Income / (Loss) $ Adjustments to reconcile net income to net cash provided by operating activities: Depreciation Expense $ Increase in Accounts Receivable Increase in Inventory Decrease in Prepaid Expenses Increase in Accounts Payable Decrease in Income Taxes Payable Net Cash Provided by Operating Activities Decrease in Income Taxes Payable Net Cash Provided by Operating Activities Cash Flows from Investing Activities Purchase of Equipment Net Cash used by Investing Activities Cash Flows from Financing Activities Payment of Cash Dividends Repayment of Notes Payable Issuance of Common Shares Net Cash used by Financing Activities Net Decrease in Cash Cash at Beginning of Year Cash at End of Year $
