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Module 5.1 Intermediate Financial Reporting 1 Week 6 Quiz Chartered Professional Accountants of Canada, CPA Canada, CPA are trademarks and/or certification marks of the Chartered Professional Accountants of Canada. 2016, Chartered Professional Accountants of Canada. All Rights Reserved. Module 5.1 Intermediate Financial Reporting 1 WEEK 6 QUIZ Use the following information to answer questions 1 to 5. Spring Inc. had the following financial statements for the year ended December 31, 20X5: Spring Inc. Statement of financial position As at December 31 20X5 Assets Cash Accounts receivable Less: allowance for doubtful accounts FVPL investments Inventory Investment in bonds, at amortized cost Building and equipment Less: accumulated depreciation Liabilities Accounts payable Income taxes payable Bank loan Shareholders' equity Common shares Preferred shares Retained earnings 2/4 $ 40,100 34,510 (690) 12,240 50,780 35,091 20X4 $ 10,500 30,780 (616) 9,500 54,621 34,520 166,000 175,000 (15,000) (12,500) $323,031 $301,805 $ 34,400 21,000 70,000 $125,400 $ 46,500 19,000 60,000 $125,500 $ 21,000 10,000 166,631 $197,631 $323,031 $ 15,000 10,000 151,305 $176,305 $301,805 Module 5.1 Intermediate Financial Reporting 1 Week 6 Quiz Spring Inc. Statement of comprehensive income As at December 31, 20X5 Sales revenue Cost of goods sold Gross profit Expenses Salaries expense Depreciation expense Bad debt expense Interest expense Interest revenue Realized gain on FVPL investments Unrealized gain on FVPL investments Loss on disposal of equipment Net income before tax Income tax expense Net income and comprehensive income $388,760 (200,000) $188,760 $(120,000) (6,500) (7,320) (4,000) $(137,820) $50,940 2,071 3,000 1,040 (2,000) $ 55,051 (9,636) $ 45,415 Additional information: 1. Spring purchased $8,400 of FVPL investments in 20X5. 2. The investment in bonds provides a yield of 6% interest, paid annually on December 31. There was no new purchase in this investment in 20X5. 3. Spring purchased equipment for $11,000 with cash in 20X5. 4. Spring declared and paid dividends in 20X5. 5. Spring reports using IFRSs. Interest and dividends received and paid are to be disclosed separately. Income tax payments are to be disclosed. Spring reports interest received and paid under operating activities, and dividends paid under financing activities. 3/4 Module 5.1 Intermediate Financial Reporting 1 Week 6 Quiz 1. Under the direct method, what is the amount of cash Spring received from sales? a) b) c) d) $377,784 $381,440 $385,030 $388,760 2. Under the direct method, what is the amount Spring paid to the suppliers? a) b) c) d) $196,159 $208,259 $212,100 $215,941 3. Under the direct method, what are Spring's proceeds from the sale of FVPL investments? a) b) c) d) $2,740 $6,700 $8,660 $9,700 4. What is the total amount of cash inflow (outflow) from Spring's investing activities? a) b) c) d) $(11,000) $3,000 $5,000 $7,000 5. What is the total amount of cash inflow (outflow) from Spring's financing activities? a) b) c) d) 4/4 $(24,089) $(14,089) $16,000 $31,326