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PLS PLS QUICK NO TIME PLS THX!!!!!!! estion B: Statement of Cash Flows (13 marks: 23 minutes) The following unclassified statement of financial position relates
PLS PLS QUICK NO TIME PLS THX!!!!!!!
estion B: Statement of Cash Flows (13 marks: 23 minutes) The following unclassified statement of financial position relates to Lobo Inc. as at December 31: LOBO INC. Comparative Statement of Financial Position December 31 Assets 2020 2019 Cash in bank Accounts receivable, net $ 111,000 $ 120.000 230,000 303,000 Inventories, at cost 190,000 160,000 Prepaid expenses 34,700 0 Land 60,000 72,500 Plant and equipment, net 325.000 253,500 Total assets $950.700 $909.000 Liabilities and Shareholders' Equity Accounts payable $100,000 $ 40,000 Accrued liabilities 21.700 30,000 Dividends payable 38,000 Bonds payable, net 103,000 105.000 Common shares 600,000 600,000 Retained camnings 88,000 134,000 Total liabilities and shareholders' equity $950.700 $909,000 Lobo's condensed statement of earnings for the year ended December 31, 2020 showed the following information LOBO INC. Statement of Earnings For the Year End December 31, 2020 Net sales Cost of sales Gross profit Decati na includine denediction of S60000 $1,560,000 (925.000 635,000 (GCI Lobo's condensed statement of earnings for the year ended December 31, 2020 showed the following information 3950.709 2:08:44 LOBO INC. Statement of Earnings For the Year Ended December 31, 2020 Net sales Cost of sales Gross profit Operating expenses, including depreciation of $60,000 Interest expense Gain on sale of land Earnings (loss) before income tax Income tax recovery Net carnings (loss) $1,560,000 (925.000 635,000 (664,000) (8,000) 25.000 (12,000) 4,000 (8.000 Additional information: a) The land that was sold during the year had an original cost of $12,500. b) Equipment was acquired in 2020, and no disposals were made during the year. Required: 1. Prepare, in good form, the operating activities section of the statement of cash flows for the year ended December 31, 2020. Use thei irect method and show all relevant calculations. Do NOT prepare a complete statement of cash flows. (6 marks) 2. Calculate the amount of cash payments to suppliers of merchandise The accounts payable relate only to purchases of merchandise for sale. (3 marks) 3. Prepare the investing activities section of the statement of cash flows for the year 2020. (4 marks)Step by Step Solution
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