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Please ensure that the Question is done in DIRECT format NOT!!!! INDIRECT!!!! -O- --0- -O- 4,000 P22.13 Seneca Corporation, which uses IFRS, has contracted with
Please ensure that the Question is done in DIRECT format NOT!!!! INDIRECT!!!!
-O- --0- -O- 4,000 P22.13 Seneca Corporation, which uses IFRS, has contracted with you to prepare a statement of cash flows. The controller has provided the following information: December 31 2020 2019 Cash $ 38,700 $13,000 Accounts Receivable 11,600 9,750 Inventory 10,600 9,100 Fv-Ni Investments 2,500 Land 5,000 5,000 Buildings -O- 27,700 Equipment 35,500 13,500 Patents 14,000 14,000 $115,400 $94,550 Allowance For Doubtful Accounts $ 1,400 $ 1,500 Accumulated Depreciation-equipment 2,000 3,300 Accumulated Depreciation-buildings 5,700 Accumulated Amortization-patents 9,000 7,750 Accounts Payable 4,400 3,300 Dividends Payable 6,000 Notes Payable, Short-Term (Non-Trade) 3,400 Long-Term Notes Payable 30,500 25,000 Share Capital 43,000 33,000 Retained Earnings 21,700 Additional information related to 2020 is as follows: 1. Equipment that cost $10,500 and was 50% depreciated at the time of disposal was sold for $2,600. 2. Common shares were issued to pay $10,000 of the long-term note payable. 3. Cash dividends paid were $6,000. Seneca has adopted the policy of classifying dividends paid as operating activities. 4. On January 1, 2020, a flood destroyed the building. Insurance proceeds on the building were $23,000. 5. FV-NI investments in shares were sold at $3,300 above their cost. The fair value of these investments at December 31, 2019, equaled their original cost. 6. Cash of $17,000 was paid to acquire equipment. 7. A long-term note for $15,500 was issued in exchange for equipment. 8. Interest of $2,200 and income tax of $5,600 were paid in cash. Seneca has adopted the policy of classifying interest paid as financing activities. Instructions a. Use the Direct method to analyze the above information and prepare a statement of cash flows for Seneca. b. Prepare a reconciliation of the change in the property, plant, and equipment's carrying amount to the amounts appearing on the statement of cash flows and corresponding notes. 5,000Step by Step Solution
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