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PART B (26 MARKS) The following data were provided by the accounting records of Agnes Limited at year-end, December 31, 2021: Statement of Financial Position

PART B (26 MARKS)

The following data were provided by the accounting records of Agnes Limited at year-end, December 31, 2021:

Statement of Financial Position

(As of December 31)

2021

2020

Cash

$ 16,629

$ 22,300

Accounts receivable

155,330

122,095

Inventory

280,335

270,033

Property, plant, and equipment

680,144

560,011

Accumulated depreciation

(205,463)

(262,940)

Land

482,000

227,000

Total assets

$ 1,408,975

$ 938,499

Accounts payable

$ 99,355

$ 107,306

Salaries payable

27,755

23,548

Interest payable

3,650

2,550

Income tax payable

17,882

33,451

Long-term debt

300,000

125,000

Common shares

405,000

150,000

Retained earnings

555,333

496,644

Total liabilities and equities

$ 1,408,975

$ 938,499

Statement of Comprehensive Income

(For the year ended December 31, 2021)

Sales revenue

$ 430,225

Cost of goods sold

(92,050)

Gross margin

338,175

Depreciation expense

(55,023)

Selling and administrative expense

(102,093)

Other expenses

(22,114)

Interest expense

(17,500)

Loss on sale of operational assets

(12,055)

Gain on debt retirement

5,000

Income tax expense

(40,317)

Net earnings and comprehensive income

$ 94,073

Additional information:

  • Sold operational assets for cash. Original cost of the operational asset was $150,000 and 75% depreciated.
  • Agnes Limited issued shares for land during the period.
  • Long-term debt with a face value of $100,000 was repaid and other long-term debt was issued at a lower interest rate.
  • Agnes Limited declared and paid dividend; and
  • Assume unexplained changes in accounts stem from logical transactions.

Required:

  1. Prepare the Statement of Cash Flow according to IFRS using the indirect method with separate and any related note disclosure along with the following requirements:

(26 marks)

  • Show cash paid of interest and income tax in the operating activities; and
  • Show cash paid of dividend in the financing activities.

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