Question
Information from the Balance Sheet and Income Statement for Monty Inc., a private company reporting under ASPE, for the year ended December 31, is given
Information from the Balance Sheet and Income Statement for Monty Inc., a private company reporting under ASPE, for the year ended December 31, is given below. Comparative Balance Sheet 2021 2020 Cash $ 90,980 $ 46,250 Accounts receivable 90,720 36,250 Inventory 122,120 102,650 Investments in land 85,220 107,250 Property, plant, and equipment 285,320 201,100 Accumulated depreciation (48,410) (39,100) $625,950 $454,400 Accounts payable $52,820 $48,530 Accrued expenses payable 11,820 19,030 Bonds payable 140,000 70,500 Common shares 250,000 196,000 Retained earnings 171,310 120,340 $625,950 $454,400 Revenues Sales $287,000 Gain on disposal of equipment 7,800 294,800 Expenses Cost of goods sold $ 95,700 Depreciation expense 56,200 Operating expenses 14,370 Income tax expense 36,900 Interest expense 2,730 205,900 Profit $ 88,900 Additional Information: 1. Investments in land were sold at cost during 2021. 2. Equipment costing $55,320 was sold for $16,230, resulting in a gain. 3. Common shares were issued in exchange for some equipment during the year. No other shares were issued. 4. The remaining purchases of equipment were paid for in cash. Prepare a Cash Flow Statement for the year ended December 31, 2021 using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) MONTY INC. Cash Flow Statement - Indirect Method For the Year Ended December 31, 2021 Cash, January 1 Issuance of Bonds Payable $ Adjustments to reconcile profit to $ $ Note X: Significant noncash investing and financing activities: Equipment with a cost of $ was exchanged for common shares.
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