question 1

View Policies Current Attempt in Progress The following information is provided for Ivanhoe's Chocolate Company: IVANHOE CHOCOLATE COMPANY Balance Sheet May 31 Assets 2021 2020 Cash $30,425 $45,500 Accounts receivable 86,900 77,500 Inventory 179,000 158,500 Prepaid expenses 5,400 6,900 Land 129,50077,000 Equipment 314,000 194,000 Accumulated depreciation equipment (72,200) (38,500) Total assets $673,025 $520,900 Liabilities and Shareholders' Equity Accounts payable $42,100 $38,500 Dividends payable 6,900 5,400 Income taxes payable 2,600 6,400 Mortgage payable 126,000 78,500 Common shares 216,000 164,500 Retained earnings 279,425 227,600 Total liabilities and shareholders' equity $673,025 $520,900 Accounts payable $42,100 Dividends payable 6,900 Income taxes payable 2,600 Mortgage payable 126,000 Common shares 216,000 Retained earnings 279,425 Total liabilities and shareholders' equity $673,025 $38,500 5,400 6,400 78,500 164,500 227,600 $520,900 Additional Information: 1. Profit for 2021 was $113,325. 2. Common shares were issued for $51,500. 3. Land with a cost of $51,500 was sold at a loss of $19,400. Purchased land with a cost of $104,000 with a $56,500 down payment and financed the remainder with a mortgage note payable. 5. No equipment was sold during 2021. 6. Net sales for the year were $673,800. 7. Cost of goods sold for the year was $400,000 8. Operating costs, including depreciation expense, were $97,900. 9. Interest expense was $5,400. 10. Income tax expense was $37,775. 11. Accounts payable is used for merchandise purchases. Prepare a cash flow statement for the year using the direct method. (Show amounts that decrease cash flow with either a - sign e.g.-15,000 or in parenthesis e.s. (15,000).) IVANHOE CHOCOLATE COMPANY Cash Flow Statement - Direct Method Note X: Land with a cost of $ was purchased by paying $ cash and issuing a mortgage note payable for $