iew Policies Current Attempt in Progress The statement of income for Ivanhoe Ltd., a private company reporting under ASPE, is presented here: IVANHOE LTD. Statement of Income Year Ended November 30, 2021 Sales $8,100,000 Cost of goods sold 4,350,000 Gross profit 3,750,000 Operating expenses 2,040,000 Income from operations 1,710,000 Interest expense 140,000 Income before income tax 1.570,000 Income tax expense 340,000 Net Income $1.230,000 Additional information regarding 2021 1. Nina Operating expenses include $75.000 of depreciation expense anda 5110,000 impairment losson property, plant and equipment Accounts receivable increased by 5186.000 Inventory decreased by 552.000 Prepaid expenses related to operating expenses increased by 550.000 Accounts payable to suppliers of invertory decreased by 5188 000 Rent parable related to operating expenses decreased by 591000 o ir View Policies Current Attempt in Progress The statement of income for Ivanhoe Ltd., a private company reporting under ASPE, is presented here: IVANHOE LTD. Statement of Income Year Ended November 30, 2021 Sales $8,100,000 Cost of goods sold 4,350,000 Gross profit 3,750,000 Operating expenses 2,040,000 Income from operations 1,710,000 Interest expense 140,000 Income before income tax 1,570,000 Income tax expense 340,000 Net income $1.230,000 Additional information regarding 2021: 1 2 3. Operating expenses include $75,000 of depreciation expense and a $110,000 impairment loss on property, plant, and equipment Accounts receivable increased by $186.000. Inventory decreased by $52.000. Prepaid expenses related to operating expenses increased by 550.000 Accounts payable to suppllers of Inventory decreased by $189.000 Rent payable related to operating expenses decreased by $91.000 o 5. Additional information regarding 2021: 1. 2. 3 4. 5. Operating expenses include $75,000 of depreciation expense and a $110,000 impairment loss on property, plant, and equipment Accounts receivable increased by $186,000. Inventory decreased by $52,000. Prepaid expenses related to operating expenses increased by $50,000. Accounts payable to suppliers of inventory decreased by $188,000. Rent payable related to operating expenses decreased by $91,000. Interest payable decreased by $20,000. Deferred revenue received from customers decreased by $24,000. Income tax payable increased by $21,000. 6. 7. 8. 9. Prepare the operating activities section of the statement of cash flows, using the indirect method. (Show amounts that decrease casa flow with either a-sign c.g. - 15,000 or in parenthesis es. (15,000)) IVANHOE LTD. Statement of Cash Flows (Partial) Year Ended November 30, 2021 Operating activities Adjustments to reconcile net income to of W Prepare the operating activities section of the statement of casillows using the Indirect wood (Show amounts that decrease cath flow with other askes -15,000 or in parenthesses (15,0001) IVANHOE LTD. Statement of Cash Flows (Partial) Year Ended November 30, 2021 Operating activities Adjustments to reconcile net income to v v V V Textbook and Media
