Je Dec 7 Question 2 of 3 View Policies Show Attempt History < Current Attempt in Progress 12.07/30 E Cullumber Adventures Ltd. (CAL) is a Canadian manufacturer of Class B motorhomes. The company has been experiencing exponential growth and is preparing to raise additional capital to fund its growth. As the vice-president of finance, you are tasked with preparing the statement of cash flows that is required as part of the loan application or a public offering. You have the statement of financial position and the statement of income to help you prepare the statement of cash flows. In addition, you also have the following information: 1. 2. In October, CAL acquired land with a value of $223,600 by issuing common shares with an equivalent value. The land is to be used as a site for a new manufacturing facility CAL hopes to construct in the next year. In February, CAL sold equipment for $9,400 cash. The equipment had originally cost $223,600 and had a net carrying amount of $28,700 at the time of sale. 3. During the year, the company borrowed $24,600 by increasing its bank loan payable. CULLUMBER ADVENTURES LTD. Statement of Financial Position As at March 31 2024 2023 EJ = -ch 5 due Dec 7 Question 2 of 3 < > CULLUMBER ADVENTURES LTD. Statement of Financial Position As at March 31 2024 2023 Assets Current assets: Cash $118,200 $53,200 Accounts receivable 148,000 101,200 Inventory 434,650 348,100 Total current assets 700,850 502,500 Equipment 1,030,000 810,300 Accumulated depreciation, equipment (472,650) (541,100) Land 223,600 0 $1,481,800 $771,700 Liabilities and shareholders' equity Current liabilities Accounts payable 12.07/30 $207,000 $60,100 ES M = due Dec 7 Question 2 of 3 Liabilities and shareholders' equity Current liabilities Accounts payable $207,000 $60,100 Dividends payable 73,000 55,100 Total current liabilities 280,000 115,200 Bank loan payable 183,200 182,600 Common shares 594,700 371,100 Retained earnings 423,900 102,800 $1,481,800 $771,700 CULLUMBER ADVENTURES LTD. Statement of Income For the year ended March 31, 2024 Sales revenue Cost of goods sold Gross margin Expenses $1,850,000 976,000 874,000 12.07/ Question 2 of 3 < > CULLUMBER ADVENTURES LTD. Statement of Income For the year ended March 31, 2024 Sales revenue Cost of goods sold Gross margin $1,850,000 976,000 874,000 Expenses Advertising expense $51,500 Wages expense 253,900 Utilities expense 23,200 Depreciation expense 126,450 Rent expenses 45,200 $500,250 Loss on sale of equipment 19,300 $354,450 Net income acer due Dec 7 Question 2 of 3 (a) Your answer is partially correct. 12.07/30 Using the information above, prepare the statement of cash flows for Cullumber Adventures Ltd. for the year ended March 31, 2024, 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).) CULLUMBER ADVENTURES LTD. Statement of Cash Flows, Indirect Method For the Year Ended March 31, 2024 Cash Flows from Operating Activities Net Income Depreciation Expense Loss on Sale of Equipment Increase in Accounts Receivable $ 354,450 M 126,450 19,300 -46,800 acer ES uestion 2 of 3 < > Increase in Accounts Receivable -46,800 Increase in Inventory Increase in Accounts Payable Net Cash Provided by Operating Activities Cash Flows from Investing Activities Proceeds from the Sale of Equipment Purchase Equipment Net Cash Used for Investing Activities Cash Flows from Financing Activities Repayment of Bank Loan Dividends Paid E -86550 146,900 9,400 443,300 24,000 15,450 $ +A 12.07/30 513.750 433,900 :7 uestion 2 of 3 < > Increase in Accounts Receivable -46,800 Increase in Inventory Increase in Accounts Payable Net Cash Provided by Operating Activities Cash Flows from Investing Activities Proceeds from the Sale of Equipment Purchase Equipment Net Cash Used for Investing Activities Cash Flows from Financing Activities Repayment of Bank Loan Dividends Paid -86550 146,900 9,400 443,300 24,000 15,450 acer 12.07/30 $ 513.750 433,900