Following are the statements of financial position, comprehensive income and supplementary information for SB Ltd. (SB) for the years ended December 31, 2018 and 2019: SB Ltd. Statement of financial position As at December 31 2019 2018 Assets Cash Accounts receivable (net) Inventory Prepaid insurance FVOCI-elect investments Property, plant and equipment Accumulated depreciation Land Total assets $ 4,400 9,400 6,040 520 1,200 32,400 (6,400) 32.440 $80.000 $ 6,000 10,600 4,000 960 800 32,000 (8,000) 16,040 $62.400 Liabilities and shareholders' equity Liabilities: Accounts payable Wages payable Dividends payable Long-term notes payable Total liabilities $ 4,000 740 $ 4,360 365 560 10,400 $15.685 8,000 $12.740 Shareholders' equity: Common shares Retained earnings AOCI - FVOCl-elect investments Total shareholders' equity Total liabilities and shareholders' equity $54,400 10,000 (85) $64,315 $80,000 $40,000 9,600 60 $49,660 $62,400 SB Ltd. Statement of comprehensive income For the year ended December 31, 2019 Sales revenue Cost of goods sold Depreciation expense Wages and salaries expense Operating expense Interest expense Loss on sale of property, plant and equipment Income tax expense Net income Other comprehensive income: Loss on FVOCI-elect investments Total comprehensive income $26,000 14,200 1,600 3,800 2,600 330 120 1.100 2,250 75 $ 2.175 Supplementary information: Equipment costing $5,000 was acquired by issuing an interest-bearing long-term note for the full amount. Equipment that originally cost $4,900 was sold during 2019. One FVOCI-elect investment was sold for $325 during 2019. The original cost was $265, and the carrying value was $300 at the end of 2018. SB's policy is to transfer the net balance of AOCI to retained earnings upon derecognition of this investment. Several FVOCI-elect investments were purchased during 2019. . Required: Prepare a statement of cash flows for the year ended December 31, 2019, using the direct method. (Remember to analyze the FVOCI-elect investment and AOCI accounts.) Following are the statements of financial position, comprehensive income and supplementary information for SB Ltd. (SB) for the years ended December 31, 2018 and 2019: SB Ltd. Statement of financial position As at December 31 2019 2018 Assets Cash Accounts receivable (net) Inventory Prepaid insurance FVOCI-elect investments Property, plant and equipment Accumulated depreciation Land Total assets $ 4,400 9,400 6,040 520 1,200 32,400 (6,400) 32.440 $80.000 $ 6,000 10,600 4,000 960 800 32,000 (8,000) 16,040 $62.400 Liabilities and shareholders' equity Liabilities: Accounts payable Wages payable Dividends payable Long-term notes payable Total liabilities $ 4,000 740 $ 4,360 365 560 10,400 $15.685 8,000 $12.740 Shareholders' equity: Common shares Retained earnings AOCI - FVOCl-elect investments Total shareholders' equity Total liabilities and shareholders' equity $54,400 10,000 (85) $64,315 $80,000 $40,000 9,600 60 $49,660 $62,400 SB Ltd. Statement of comprehensive income For the year ended December 31, 2019 Sales revenue Cost of goods sold Depreciation expense Wages and salaries expense Operating expense Interest expense Loss on sale of property, plant and equipment Income tax expense Net income Other comprehensive income: Loss on FVOCI-elect investments Total comprehensive income $26,000 14,200 1,600 3,800 2,600 330 120 1.100 2,250 75 $ 2.175 Supplementary information: Equipment costing $5,000 was acquired by issuing an interest-bearing long-term note for the full amount. Equipment that originally cost $4,900 was sold during 2019. One FVOCI-elect investment was sold for $325 during 2019. The original cost was $265, and the carrying value was $300 at the end of 2018. SB's policy is to transfer the net balance of AOCI to retained earnings upon derecognition of this investment. Several FVOCI-elect investments were purchased during 2019. . Required: Prepare a statement of cash flows for the year ended December 31, 2019, using the direct method. (Remember to analyze the FVOCI-elect investment and AOCI accounts.)
