. Prepare the operating activities section only using the indirect method in good form

2017 Acct 210 Homework Question 5 Indirect Method Statement of Cash Flows Please ensure you read the full homework instructions file on D2L. Failure to correctly name the file or use Word or Excel could result in a non-negotiable zero on the homework assignment. 1. Name your initial submission file as follows: first initial second initial ACCT210HW5. Grade value: 1.5%. 2. Upon submission, a new dropbox with the solution will become available for your final submission. Name your final submission file as follows: first initial second initial ACCT210HW5final. Grade value: 1.5%. Question Information This year you were hired to work by Minecrafters Corporation, a public corporation, as an assistant controller. Minecrafters is a custom furniture company specializing in wood and metal furniture combinations. The final 2016 Comparative Statement of Financial Position and 2016 Statement of Income have been provided for your use with all adjustments complete. Additional Information: Minecrafters is a public company using IFRS, reports cash paid for interest through operating activities and all accounts payable are related to purchases of inventory. The following financial events occurred in 2016: 1. An accounts receivable of $6,000 was written off as uncollectible in 2016. In addition, an adjustment was made at the end of 2016 to estimate uncollectible accounts, using the allowance method. Bad debts expense is included with General and Administrative Expenses. (Hint: you will likely need to do t-accounts and carefully consider non-cash transactions and the relationships between accounts with journal entries to get this part of the question). 2. Land with a cost of $600,000 was sold in 2016. Additional land was purchased in 2016. 3. In 2016, a building with a cost of $1,000,000 was sold, and an additional building was built for cash. 4. Equipment was purchased on December 31 with an exchange of $85,000 in common shares and the rest in cash. 5. A stock dividend of $600,000 was declared and distributed in 2016. 6. Additional stock was repurchased and retired in 2016. Repurchase price was equal to the original issue price. 7. An additional cash dividend was declared and paid in 2016. 8. Bonds were retired in 2016 at par value. Page 1 of 5 2017 Acct 210 Homework Question 5 Indirect Method Statement of Cash Flows Required: a. Prepare the operating activities section only using the indirect method in good form, separate from the full cash flow discussed in HW4. Under the indirect method, you must meet the disclosure requirements discussed in the textbook on pages 223 to 226 either on the face of the financial statements or through note disclosures. b. For any items referred to in the additional information above and any other items requiring calculations, provide journal entry(ies) and a reconciliation of the change in balances in either taccount or algebraic calculation related to the cash flow statement. Sales Minecrafters Corporation Statement of Income For the year ended December 31, 2016 $ 9,184,888 Cost of Goods sold Gross Margin Operating Expenses (3,900,000) General and administration expenses (1,283,210) Wage expense (1,710,000) Employee benefits expense (302,000) Insurance expense (36,700) Depreciation expense - building (781,500) Amortization expense - patent Total Operating Expenses Income from operations Other expenses, gains and losses (8,000) Interest expense (21,600) Loss on sale of land Gain on sale of building Total Other expenses, gains and losses Income from operations Income tax expense Net Income (25,000) $ 5,284,888 (4,121,410) 1,163,478 6,500 , $ (40,100) 1,123,378 (337,013) 786,365 Page 2 of 5 2017 Acct 210 Homework Question 5 Indirect Method Statement of Cash Flows Page 3 of 5 2017 Acct 210 Homework Question 5 Indirect Method Statement of Cash Flows Minecrafters Corporation Statement of Financial Position As at December 31, 2016 with comparative 2015 figures Assets 2016 Current Assets Cash $ 890,000 Accounts Receivable 457,000 Allowance for Doubtful Accounts (22,210) Net Accounts Receivable 434,790 Inventory 1,189,000 Total Current Assets 2,513,790 Non Current Assets Property, Plant and Equipment Land 1,300,000 Building 3,600,000 Accumulated depreciation - Building Net Building Equipment Total Property Plant and Equipment Other Non Current Assets Patent for custom metalworking process Total Other Non Current Assets Total Assets 2015 $ 554,000 556,000 (27,800) 528,200 1,135,000 2,217,200 1,600,000 4,140,000 (1,845,000) 1,755,000 336,000 3,391,000 (1,293,500) 2,846,500 0 4,446,500 32,000 32,000 $ 5,936,790 40,000 40,000 $ 6,703,700 Page 4 of 5 2017 Acct 210 Homework Question 5 Liabilities and Shareholders' Equity Liabilities Current Liabilities Accounts payable Wages payable Income Taxes payable Total Current Liabilities Non Current Liabilities Bonds payable Total Non Current liabilities Total Liabilities Shareholders' Equity Contributed capital Common shares Total Contributed capital Retained earnings Total Shareholders' Equity Total Liabilities and Shareholders' Equity Indirect Method Statement of Cash Flows $ 852,000 107,000 18,800 977,800 $ 750,000 122,000 46,400 918,400 1,800,000 1,800,000 2,777,800 2,000,000 2,000,000 2,918,400 1,000,000 1,000,000 2,158,990 3,158,990 $ 5,936,790 1,200,000 1,200,000 2,585,300 3,785,300 $ 6,703,700 Page 5 of 5