Question 6 of 6 - / 16 Current Attempt in Progress Marigold Inc, a major retailer of bicycles and accessories, operates several stores and is a publicly traded company. The company is currently preparing its statement of cash flows and follows the policy of classifying interest paid as operating cash flows and dividends paid as financing cash flows. The comparative statement of financial position and income statement for Marigold as of May 31, 2020. are as follows: MARIGOLD INC. Statement of Financial Position As at May 31 Current assets 2020 2019 Cash $35,250 $21,000 80.640 56,440 188,480 199,690 8,640 7.730 313,010 284,860 Accounts receivable Inventory Prepaid expenses Total current assets Plant assets Less: Accumulated depreciation Net plant assets Total assets 600,500 507,500 154,000 123,000 446,500 384,500 $759,510 $669,360 $121,840 $115,840 60,820 72,730 25,770 23,290 208,430 211.860 80,820 106,000 Current liabilities Accounts payable Salaries and wages payable Interest payable Total current liabilities Mortgage payable Total liabilities Shareholders' equity Common shares Retained earnings Total shareholders' equity Total liabilities and shareholders' equity 289,250 317.860 335,930 280,000 134,330 71,500 470,260 351,500 $759,510 $669,360 $ 1,326,820 805,000 521,820 194,000 MARIGOLD INC. Income Statement For the Year Ended May 31, 2020 Sales Cost of goods sold Gross margin Expenses Salaries and wages expense Interest expense Other operating expenses Depreciation expense Total operating expenses Operating income Income tax expense Net earnings 65,300 23,300 31,000 313,600 208,220 66,500 $ 141,720 The following is additional information about transactions during the year ended May 31, 2020, for Marigold Inc., which follows IFRS. 1. 2. 3. Plant assets costing $93.000 were purchased by paying $50,000 in cash and issuing 5.000 common shares. The other expenses relate to prepaid items. In order to supplement its cash, Marigold issued 4.000 additional common shares. There were no penalties assessed for the repayment of the mortgage. Cash dividends of $78,890 were declared and paid at the end of the fiscal year. 4. 5. Prepare a statement of cash flows for Marigold Inc. for the year ended May 31, 2020, using the direct method. (Show amounts that decrease cash flow with either a - sign eg. -15,000 or in parenthesis eg. (15,000).) Marigold Inc Statement of Cash Flows (Direct Method) $ $ GA >