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Monty Inc., a major retailer of high - end office furniture, operates several stores and is a publicly traded company. The company is currently preparing
Monty Inc., a major retailer of highend office furniture, operates several stores and is a publicly traded company. The company is currently preparing its statement of cash flows. The comparative statement of financial position and income statement for Monty as at May are as follows:
Monty Inc.
Statement of Financial Position
May and May
Assets
Cash
$
$
Accounts receivable
Inventory
Prepaid insurance
Total current assets
Plant assets
Less: Accumulated depreciation
Net plant assets
Total assets
$
$
Liabilities and Shareholders' Equity
Accounts payable
$
$
Salaries and wages payable
Interest payable
Total current liabilities
Mortgage payable
Total liabilities
Shareholders' equity
Common shares
Retained earnings
Total shareholders' equity
Total liabilities and shareholders' equity
$
$
Monty Inc.
Income Statement
For the Year Ended May
Sales
$
Cost of goods sold
Gross margin
Expenses
Salaries and wages expense
Other operating expenses
Depreciation expense
Total operating expenses
Operating income
Interest expense
Income before income tax
Income tax expense
Net earnings
$
The following is additional information about transactions during the year ended May for Monty, which follows IFRS.
Plant assets costing $ were purchased by paying $ in cash and issuing common shares.
In order to supplement its cash, Monty issued additional common shares.
Cash dividends of $ were declared and paid at the end of the fiscal year. Dividends paid are treated as financing
activities.
Prepare a statement of cash flows for Monty for the year ended May using the direct method.
Schedule of noncash investing and financing activities $
Please provide detailed solutions. Thank you so much.
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