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MONTY CORPORATION Statement of Financial Position December 31 Assets 2020 2019 Cash $62,400 $27,840 Accounts receivable 83,520 56,640 Inventory 127,680 77,760 FV-OCl investments in shares

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MONTY CORPORATION Statement of Financial Position December 31 Assets 2020 2019 Cash $62,400 $27,840 Accounts receivable 83,520 56,640 Inventory 127,680 77,760 FV-OCl investments in shares 60,480 80,640 Land 62,400 98,880 Equipment 374,400 412,800 Accumulated depreciation-equipment (112,320) (82,560 Goodwill 119,040 166,080 Total $777,600 $838,080 Liabilities and Shareholders' Equity Accounts payable $11.520 $48.960 Dividends payable 14,400 30,720 Notes payable 211,200 321,600 Common shares 254,400 120.000 Retained earnings 276.480 272.640 Accumulated other comprehensive income 9,600 44.160 Total $777,600 $838.080 Additional information: 1. 2. 3. 4. Net income for the fiscal year ending December 31, 2020, was $18,240. In March 2020, a plot of land was purchased for future construction of a plant site. In November 2020, a different plot of land with original cost of $82,560 was sold for proceeds of $91,200. In April 2020, notes payable amounting to $134,400 were retired through the issuance of common shares. In December 2020, notes payable amounting to $24,000 were issued for cash. FV-OCI investments were purchased in July 2020 for a cost of $14,400. By December 31, 2020, the fatr value of Monty's portfolio of FV-OCl investments decreased to $60,480. No FV-OC investments were sold in the year. On December 31, 2020, equipment with an original cost of $38,400 and accumulated depreciation to date of $11,520 was sold for proceeds of $20,160. No equipment was purchased in the year, Dividends on common shares of $30.720 and $14,400 were declared in December 2019 and December 2020, respectively The 2019 dividend was paid in January 2020 and the 2020 dividend was paid in January 2021. Dividends paid are treated as financing activities A loss on impairment was recorded in the year to reflect a decrease in the recoverable amount of goodwill. No goodwill was purchased or sold in the year. 5. 6. 7. (a) Prepare a statement of cash flows using the indirect method for cash flows from operating activities. (Show amounts that decrease cash flow with either a - signe.g.-15,000 or in parenthesis e.g. (15,000).)

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