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Oriole Limited is a private company reporting under ASPE. Its comparative balance sheet at December 31 is as follows: ORIOLE LIMITED Balance Sheet December 31
Oriole Limited is a private company reporting under ASPE. Its comparative balance sheet at December 31 is as follows:
ORIOLE LIMITED Balance Sheet December 31 | |||||
Assets | 2021 | 2020 | |||
Cash | $47,880 | $35,700 | |||
Accounts receivable | 315,000 | 252,000 | |||
Inventory | 210,000 | 138,600 | |||
Prepaid insurance | 7,560 | 10,500 | |||
Equipment and vehicles | 525,000 | 420,000 | |||
Accumulated depreciation | (147,000 | ) | (117,600 | ) | |
Total assets | $958,440 | $739,200 | |||
Liabilities and Shareholders Equity | |||||
Accounts payable | $ 94,920 | $ 84,000 | |||
Salaries payable | 12,600 | 16,800 | |||
Interest payable | 10,920 | 8,400 | |||
Notes payable | 210,000 | 147,000 | |||
Common shares | 252,000 | 168,000 | |||
Retained earnings | 378,000 | 315,000 | |||
Total liabilities and shareholders equity | $958,440 | $739,200 |
Additional information: | ||
1. | Profit for 2021 was $84,000. | |
2. | Equipment was purchased during the year. No equipment was sold. | |
3. | Cash dividends were paid to the common shareholders during the year. |
Prepare the cash flow statement using the indirect method
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