Psychodelia Fixation Balance sheet as at December 31 2022 2021 ASSETS Cash 97,800 48,400 Held for trading investments 128,000 114,000 Accounts receivable 79,000 43,000 Inventory 131,000 100,300 Prepaid insurance 18,400 26,000 Equipment 270,000 242,500 Accumulated depreciation (50,000) (52,000) Total assets 674,200 522,200 LIABILITIES AND SHAREHOLDER'S EQUITY Accounts payable 93,000 77,300 Accrued liabilities 11,300 7,000 Deferred revenue 11,900 7,500 Bank loan payable 110,000 150,000 Common shares 200,000 175,000 Retained earnings 248,000 105,400 Total liabilities and equity 674,200 522,200 Psychodelia Fixation MacBook AirPsychodelia Fixation Income Statement for the year ended December 31, 2022 Sales 492,600 Cost of goods sold 185,000 Gross profit 307,600 Operating expenses 116,650 Operating income 190,950 Other revenue and expenses Unrealized gain (loss) on held for trading investments 14,000 Interest income (expense) (4,510) 9,490 Income before tax 200,440 Income tax expense 45,000 Net income 155,440 New equipment costing $85,000 was purchased for $25,000 and a $60,000 long term bank loan. Old equipment costing $57,500 was sold resulting in a gain of $7,500. Operating expenses includes depreciation expense of $46,500. MacBook Air18 New equipment costing $85,000 was purchased for $25,000 and a $60,000 long term bank loan. Old equipment costing $57,500 was sold resulting in a gain of $7,500. Operating expenses includes depreciation expense of $46,500. An unrealized gain on held for trading investments of $14,000 was recorded. Psychodelia Fixation Statement of Cash Flow for the year ended December 31, 2022 Operating activities Cash receipts: Cash receipts from customers Blank 1 Cash disbursements: Cash payments to suppliers Blank 2 Cash payments for operating expenses Blank 3 Cash payments for income tax Blank 4 MacBook Air18 Old equipment costing $57,500 was sold I Operating expenses includes depreciation expense of $46,500. An unrealized gain on held for trading investments of $14,000 was recorded. Psychodelia Fixation Statement of Cash Flow for the year ended December 31, 2022 Operating activities Cash receipts: Cash receipts from customers Blank 1 Cash disbursements: Cash payments to suppliers Blank 2 Cash payments for operating expenses Blank 3 Cash payments for income tax Blank 4 Cash payments for interest Blank 5 Blank 6 Net cash provided by operating activities Investing activities MacBook Air18 Net cash provided by operating activities Investing activities Proceeds on disposal of equipment sold Blank 7 Purchase of new equipment Blank 8 Blank 9 Total Investing Cash flow Financing activities Sale of common shares Blank 10 Repayment of bank loan payable Blank 11 Payment of cash dividends Blank 12 Blank 13 Net increase in cash Blank 14 Cash, January 1, 2022 Blank 15 Cash, December 31 2022 Blank 16 Question 21 (20 points) Amount for blank 1 MacBook AirAnswer the written response questions below. Each question is worth 4 points. Question 22 (4 points) Which of the following loans you would take to finance a $1,000,000 expansion, Be sure to do sufficient calculations to defend you answer. Bank Alpha requires a 20% compensating balance, discounts the loan and wants to be paid back in 4 quarterly payments. Omega Bank requires a 10% compensating balance but does not discount the loan and wants to be paid back in 12 monthly installments. The stated rate at both banks is 9% Paragraph v BIUAEEV + v . . . MacBook AirQuestion 23 (4 points) List and explain the "4C's of credit" as discussed by the author of the course text. Paragraph ~ | B IU A E- Ev | +v /1. Previous Page Next Page Page 3 of 5 Submit Quiz 12 of 25 questions saved