Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 3 (16 marks) (31 minutes) The statements of comprehensive income, financial position and supplementary information for Felix Company are given below. Felix Company Statement
Question 3 (16 marks) (31 minutes) The statements of comprehensive income, financial position and supplementary information for Felix Company are given below. Felix Company Statement of Comprehensive Income (000's) for the year ended December 31, 20x6 $ 26,000 Sales revenue Cost of goods sold Depreciation expense Wages and salaries expense Operating expense Interest expense Loss on sale of PPE Income tax expense Net income Other comprehensive income Loss on FVTOCI Investments Total Comprehensive income 14,200 1,600 3,800 2,600 330 120 1,100 18,500 2,250 85 $2,165 Felix Company Comparative Balance Sheet (000's) December 31, 20x6 Cash Accounts receivable Inventory Prepaid insurance FVTOCI Investments Plant and equipment Accumulated depreciation Land 20x6 $ 4,400 9,400 6,040 520 1,200 32,400 -6,400 32,440 $80,000 20x5 $ 6,000 10,600 4,000 960 800 32,000 -8,000 16,040 $62,400 $ 4,000 740 Accounts payable Wages payable Dividends payable Long-term notes payable Common shares Retained earnings Accumulated OCI - FVTOCI Investments $ 4,360 365 560 10,400 54,400 10,000 (85) $80,000 8,000 40,000 9,600 60 $62,400 Additional Information - Equipment costing $5,000 was acquired by issuing an interest-bearing long-term note for the full amount. Equipment whose original cost was $4,900 was sold during the year One FVTOCI investment was sold for $325 during the year. This investment's original cost was $265 and had a carrying value of $300 at the end of 2015. Several FVTOCI investments were purchased during the year. Required - Prepare the following components of the Statement of Cash Flow for the year ended December 31, 20x6: Cash flow from operations (direct method) Cash flow from investing (Hint: analyze the FVTOCI investment and Accumulated OCI accounts.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started