Options for Question 2: Loan Receivable or Lease Liability

Options for Question 5:

(175,000)

(150,500)

280,600

Options for Question 6: Dividend, Bank loan, accounts payable, inventory, purchase of equipment, loan to the unrelated company

The following is Jan Corp.'s comparative SFP at December 31, 2019 and 2020. Use this information to create a Statement of Cash Flow for 2020 and answer the questions Jan Corp Statement of Financial Position as of Dec 31 2020 2019 Change Cash 46,100 91,000 (44,900) |A/R Prepaid Insurance Inventory Land 213,000 16,000 298,000 125,000 178,000 27,000 212,000 35,000 (11,000) 86,000 125,000 1,700,000 1,800,000 (100,000) Equipment Accumulated Depreciation - Equipment Loan Receivable (1,240,000) (1,080,000) (160,000) 125,000 125,000 Total Assets 1,283,100 1,228,000 Bank Loan |A/P Income Tax Payable Dividends Payable Lease Liability Common Shares Common Shares Dividend Distributable Retained Earnings Total Liabilities and S/E 120,000 232,000 37,000 75,000 2,700 525,000 193,900 343,500 36,000 76,600 (73,900) (111,500) 1,000 (1,600) 2,700 125,000 400,000 2,700 (2,700) 116,100 291,400 1,283,100 175,300 1,228,000 2020 75,000 1. Dividend: Dividend Amount (Cash) Stock Dividend Dividend Declared Dividend Paid 2019 76,600 2,700 18-Nov-19 21-Feb-20 15-Dec-20 17-Jan-21 2020 75,000 1. Dividend: Dividend Amount (Cash) Stock Dividend Dividend Declared Dividend Paid 2019 76,600 2,700 18-Nov-19 21-Feb-20 15-Dec-20 17-Jan-21 2. Common Shares: Common Shares with market value of $125,000 was issued for Land Purchase. 3. Equipment: On Jan 1, 2020 the company sold equipment with an original cost of 300,000. The accumulated depreciation of the equipment sold was 180,000. The equipment was sold for 150,000 cash. All new equipment was purchased for cash in 2020. 4. Loan Receivable The company lent 125,000 to an unrelated company on Dec 31, 2020. The company did not receive any interest or principal payment for the loan in 2020. 5. Lease The company entered into a right-of-use lease for equipment on Dec 31, 2020. The present value of annual lease payment is 2,700 First lease payment was made on Jan 3, 2021 6. Net Income for 2020 191,100 Based on Jan Corp's financial statements, what is the Depreciation Expense of 2020? Select one: O a. 30,000 O b. 340,000 O c. 160,000 O d. 120,000 From the Cash Flow question posted for this exam (Jan Corp), please determine whether the listed items generate cash inflow, or cash outflow for 2020 Cash Flow Statement. Please determine from the Cash Flow Statement perspective. 2 Possible Answers: Cash Outflow Cash Inflow No Impact on Cash Flow Land Choose... Income Tax Payable Choose... Accumulated Depreciation Choose... Sale of Equipment Choose... Purchase of Equipment Choose... Common Shares Choose... Accounts Receivable Choose... Prepaid Insurance Choose... Bank Loan Choose... Inventory Choose... Use your cash flow statement to fill up the following line. 3 The will be part of investing activity and will not be part of investing activity. Cash Outflow for Dividend in 2020 is: 4 Select one: O a. 79,300 O b. 82,300 O c. 85,000 O d. 76,600 From your Cash Flow Statement, please provide the following calculated numbers. 5 Cash provided (used) by financing activities Choose... Cash provided (used) by investing activities Choose. Cash provided (used) by operating activities Choose.. Based on your cash flow statement, choose the items resulted in the most cash outflow in descending order. (Choose the highest cash outflow item first, then choose the second and then choose the third). Item with highest cash outflow 6 Choose... Item with second-highest cash outflow Choose. Item with third highest cash outflow Choose... The following is Jan Corp.'s comparative SFP at December 31, 2019 and 2020. Use this information to create a Statement of Cash Flow for 2020 and answer the questions Jan Corp Statement of Financial Position as of Dec 31 2020 2019 Change Cash 46,100 91,000 (44,900) |A/R Prepaid Insurance Inventory Land 213,000 16,000 298,000 125,000 178,000 27,000 212,000 35,000 (11,000) 86,000 125,000 1,700,000 1,800,000 (100,000) Equipment Accumulated Depreciation - Equipment Loan Receivable (1,240,000) (1,080,000) (160,000) 125,000 125,000 Total Assets 1,283,100 1,228,000 Bank Loan |A/P Income Tax Payable Dividends Payable Lease Liability Common Shares Common Shares Dividend Distributable Retained Earnings Total Liabilities and S/E 120,000 232,000 37,000 75,000 2,700 525,000 193,900 343,500 36,000 76,600 (73,900) (111,500) 1,000 (1,600) 2,700 125,000 400,000 2,700 (2,700) 116,100 291,400 1,283,100 175,300 1,228,000 2020 75,000 1. Dividend: Dividend Amount (Cash) Stock Dividend Dividend Declared Dividend Paid 2019 76,600 2,700 18-Nov-19 21-Feb-20 15-Dec-20 17-Jan-21 2020 75,000 1. Dividend: Dividend Amount (Cash) Stock Dividend Dividend Declared Dividend Paid 2019 76,600 2,700 18-Nov-19 21-Feb-20 15-Dec-20 17-Jan-21 2. Common Shares: Common Shares with market value of $125,000 was issued for Land Purchase. 3. Equipment: On Jan 1, 2020 the company sold equipment with an original cost of 300,000. The accumulated depreciation of the equipment sold was 180,000. The equipment was sold for 150,000 cash. All new equipment was purchased for cash in 2020. 4. Loan Receivable The company lent 125,000 to an unrelated company on Dec 31, 2020. The company did not receive any interest or principal payment for the loan in 2020. 5. Lease The company entered into a right-of-use lease for equipment on Dec 31, 2020. The present value of annual lease payment is 2,700 First lease payment was made on Jan 3, 2021 6. Net Income for 2020 191,100 Based on Jan Corp's financial statements, what is the Depreciation Expense of 2020? Select one: O a. 30,000 O b. 340,000 O c. 160,000 O d. 120,000 From the Cash Flow question posted for this exam (Jan Corp), please determine whether the listed items generate cash inflow, or cash outflow for 2020 Cash Flow Statement. Please determine from the Cash Flow Statement perspective. 2 Possible Answers: Cash Outflow Cash Inflow No Impact on Cash Flow Land Choose... Income Tax Payable Choose... Accumulated Depreciation Choose... Sale of Equipment Choose... Purchase of Equipment Choose... Common Shares Choose... Accounts Receivable Choose... Prepaid Insurance Choose... Bank Loan Choose... Inventory Choose... Use your cash flow statement to fill up the following line. 3 The will be part of investing activity and will not be part of investing activity. Cash Outflow for Dividend in 2020 is: 4 Select one: O a. 79,300 O b. 82,300 O c. 85,000 O d. 76,600 From your Cash Flow Statement, please provide the following calculated numbers. 5 Cash provided (used) by financing activities Choose... Cash provided (used) by investing activities Choose. Cash provided (used) by operating activities Choose.. Based on your cash flow statement, choose the items resulted in the most cash outflow in descending order. (Choose the highest cash outflow item first, then choose the second and then choose the third). Item with highest cash outflow 6 Choose... Item with second-highest cash outflow Choose. Item with third highest cash outflow Choose