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Seaforce Manufacturing Inc. Income Statement Year Ended December 31, 20X5 Sale $340,000 Cost of goods sold $250,100 Gross Profit $89,900 Operating Expenses $55,000 Loss on
Seaforce Manufacturing Inc. | ||
Income Statement | ||
Year Ended December 31, 20X5 | ||
Sale | $340,000 | |
Cost of goods sold | $250,100 | |
Gross Profit | $89,900 | |
Operating Expenses | $55,000 | |
Loss on Sale of equipment | $2,500 | $57,500 |
Profit from Operations | $32,400 | |
Other expenses | ||
Interest Expense | $3,500 | |
Profit before Income Tax | $28,900 | |
Income Tax Expense | $12,000 | |
Profit | $16,900 | |
Additional Information:
- Operating expenses include depreciation expense of $10,000
- Accounts Payable related to the purchase of inventory
- Equipment that cost $12,500 was sold at a loss of $2,500
- New equipment was purchased during the year for $8,500
- Dividends declared and paid in 20X5 totaled $3,000
- Common shares were sold for $12,000 cash
- Interest payable in 20X5 was $800 greater than interest payable in 20X4
- The company uses IFRS and do not treat dividends as part of operations
Seaforce Manufacturing Inc. comparative balance sheet at December 31 20X5
20X5 | 20X4 | |
Cash | 6,450 | 4,100 |
Accounts Receivable | 72,000 | 6,500 |
Inventory | 110,250 | 140,000 |
Prepaid Expenses | 1,750 | 1,020 |
Equipment | 96,000 | 100,000 |
Accumulated Depreciation - equipment | (50,000 | (42,000) |
Total Assets | 236,450 | 209,620 |
Account Payable | 16,230 | 9,900 |
Interest Payable | 810 | 10 |
Income taxes payable | 10,800 | 9,500 |
Dividends Payable | 1,800 | 2,800 |
Long-term Notes Payable | 54,500 | 62,000 |
Common shares | 135,000 | 123,000 |
Retained Earnings | 16,310 | 2,410 |
Total Liabilities & Shareholders' Equity | 236,450 | 209,620 |
What is the Carrying amount for the machinery that was sold when the indirect method is used to prepare the cash flow statement? ______
Multiple Choice
- None of the other alternatives are correct
- $10,500
- $12,000
- $2,000
- $10,000
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