Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Information from the statement of financial position and statement of income is given below for Novak Road Inc., a company following IFRS, for the year
Information from the statement of financial position and statement of income is given below for Novak Road Inc., a company following IFRS, for the year ended December 31. Novak Road has adopted the policy of classifying interest paid as operating activities and dividends paid as financing activities. Comparative Statement of Financial Position, at December 31 2020 2019 Cash $92,800 $47,850 Accounts receivable 92.100 37,500 Inventory 132,100 111,650 Investments in land 85,100 108,000 Property, plant, and equipment 293,000 210,000 Accumulated depreciation (49,100) (40,000) $646,000 $475,000 Accounts payable Accrued liabilities Notes payable Common shares Retained earnings $53,600 12,300 147,000 250,000 183,100 $646,000 $48,780 19,430 79,000 201,000 126,790 $475,000 Statement of Income, year ended December 31, 2020 Revenues Sales revenue Gain on disposal of investment in land Gain on disposal of equipment $288,560 5,000 8,950 302,510 Expenses Cost of goods sold Depreciation expense Operating expenses Income tax expense Interest expense $96,560 57,800 14,680 37,900 2,790 209,730 $92,780 Net income Additional information: 1. 2. Investments in land were sold at a gain during 2020. Equipment costing $57,800 was sold for $18,050, resulting in a gain. Common shares were issued in exchange for some equipment during the year. No other shares were issued. The remaining purchases of equipment were paid for in cash. 3. 4. Prepare the operating activities section of the statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) NOVAK ROAD INC. Statement of Cash Flows - Direct Method A $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started