Question 1)

Information from the Balance Sheet and Statement of Income are given below for Bramble Inc., a private company reporting under ASPE, for the year ended December 31

BRAMBLE INC. Cash Flow Statement - Direct Method For the Year Ended December 31, 2021 [Operating Activities Cash Collections From Customers $ 238910 Cash Payments to Suppliers F111650 Cash Payments for Interest T-2950 Cash Payments for Income Taxes) -38000 Cash Payments for Operating Expenses -21580 Net Cash Provided by Operating Activities 64730 Investing Activities Proceeds from Sale of Equipment $ 17550 Purchase of Equipment [-98080 Proceeds from Sale of Investments 21810 Net Cash Used by Investing Activities -58720 (Financing Activities) [Issuance of Bonds Payable 64000 Payment of Cash Dividends -39250 Net Cash Provided by Financing Activities 24750 Net Increase in Cash 30760 Cash, January 1 47350 Cash, December 31 $ 78110 activities:Comparative Balance Sheet 2021 2020 Cash $ 78,110 $ 47,350 Accounts receivable 90,940 37,350 Inventory 123,440 103,750 Investments in land 86,540 108,350 Property, plant, and equipment 286,640 202,200 Accumulated depreciation (50,060) (40,200) $615,610 $458,800 Accounts payable $54,140 $49,850 Accrued expenses payable 13,140 19,250 Bonds payable 140,000 76,000 Common shares 250,000 207,000 Retained earnings 158,330 106,700 $615,610 $458,800 Revenues Sales $292,500 Gain on disposal of equipment 8,350 300,850 Expenses K Cost of goods sold $ 96,250 Depreciation expense 57,300 Operating expenses 15,470 Income tax expense 38,000 Interest expense 2,950 209,970 Profit $ 90,880 Additional Information: 1. Investments in land were sold at cost during 2021. 2. Equipment costing $56,640 was sold for $17,550, resulting in a gain. 3. Common shares were issued in exchange for some equipment during the year. No other shares were issued. 4. The remaining purchases of equipment were paid for in cash. Prepare a Cash Flow Statement for the year ended December 31, 2021 using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -45,000 or in parenthesis e.g. (45,000).)Grouper Corporation Statement of Financial Position As at December 31 Assets 2021 2020 Cash $601,100 $300,400 Accounts receivable 149,800 Merchandise inventory 175,150 751,700 500,750 Prepaid operating expenses 25,450 30,700 FV-NI investments 350,850 250,850 Equipment 1,875,900 1,800,900 Less: Accumulated depreciation (149,650) (80,000) $3,605,150 $2,978,750 Liabilities and Shareholders' Equity Accounts payable $225,600 $200,850 Income tax payable 25,350 101,350 30,700 Bonds payable 250,400 Common shares 1,400,500 1,852,350 1,200,150 Retained earnings 1,296,650 $3,605,150 $2,978,750 During 2021, Grouper Corporation earned a profit of $680,700. Depreciation expense was $114,300. Equipment was sold at a gain of $20,700. Prepare the operating activities section of the statement of cash flows, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Grouper Corporation Partial Statement of Cash Flows For the Year Ended December 31, 2021 [ Operating Activities Profit $ 680,700 Adjustment to reconcile profit to net cash provided by operating activities: (Gain on Disposal of Equipment -20700 Depreciation Expense 114300 Decrease in Accounts Receivable 25350 Increase in Inventory 250950 Decrease in Prepaid Expenses 5250 v Increase in Accounts Payable 24750 Decrease in Income Tax Payable -5350 -107350 ach Deauidad hut Anarating Activition aleman's 2 /fonts +1573350