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SFP accounts of Wildhorse Inc., which follows IFRS, follow: WILDHORSE INC. Comparative Statement of Financial Position Accounts December 31, 2020 and 2019 December 31 Debit
SFP accounts of Wildhorse Inc., which follows IFRS, follow:
WILDHORSE INC. Comparative Statement of Financial Position Accounts December 31, 2020 and 2019 | |||||||
December 31 | |||||||
Debit accounts | 2020 | 2019 | |||||
Cash | $45,370 | $34,050 | |||||
FV-NI investments | 23,040 | 40,350 | |||||
Accounts receivable | 67,730 | 60,150 | |||||
Merchandise inventory | 30,320 | 24,350 | |||||
Machinery | 30,270 | 19,050 | |||||
Buildings | 67,280 | 56,050 | |||||
Land | 7,500 | 7,500 | |||||
$271,510 | $241,500 | ||||||
Credit accounts | |||||||
Allowance for doubtful accounts | $3,160 | $2,410 | |||||
Accumulated depreciationmachinery | 5,460 | 2,090 | |||||
Accumulated depreciationbuildings | 13,340 | 8,850 | |||||
Accounts payable | 29,900 | 24,650 | |||||
Accrued liabilities | 2,390 | 1,140 | |||||
Income taxes payable | 960 | 1,460 | |||||
Long-term note payablenon-trade | 26,200 | 31,200 | |||||
Common shares | 150,000 | 125,000 | |||||
Retained earnings | 40,100 | 44,700 | |||||
$271,510 | $241,500 |
Additional information: Wildhorse Inc. has adopted the policy of classifying interest paid as operating activities and dividends paid as financing activities.
1. | Cash dividends declared during the year were $24,170. | |
2. | A 20% stock dividend was declared during the year and $25,000 of retained earnings was capitalized. | |
3. | FV-NI investments that cost $20,400 and had a fair value at December 31, 2019, of $24,450 were sold during the year for $23,580. | |
4. | Machinery that cost $3,810 and had $750 of depreciation accumulated was sold for $2,250. |
Wildhorses 2020 statement of income is as follows:
Sales revenue | $643,000 | ||||||
Cost of goods sold | 376,000 | ||||||
Gross margin | 267,000 | ||||||
Operating expenses (includes $8,610 depreciation and $5,400 bad debts) | 180,750 | ||||||
Income from operations | 86,250 | ||||||
Loss on disposal of FV-NI investments | $(870 | ) | |||||
Interest expense | (3,000 | ) | |||||
Loss on disposal of machinery | (810 | ) | (4,680 | ) | |||
Income before tax | 81,570 | ||||||
Income tax expense | 37,000 | ||||||
Net income | $44,570 |
Calculate net cash flow from operating activities using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
WILDHORSE INC. Statement of Cash Flow For the Month Ended December 31, 2020December 31, 2020For the Year Ended December 31, 2020 | ||||
Cash, January 1, 2020Net Increase in CashCash, December 31, 2020Net Cash Provided by Operating ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashCash Flows from Investing ActivitiesNet Cash Used by Investing ActivitiesCash Flows from Operating ActivitiesCash Flows from Financing Activities | ||||
Income Taxes PaidCash Paid for Other Operating ExpensesCash Paid for InterestNet cash received on FV-NI investment transactionsCash Paid to Suppliers for GoodsCash Received from Customers | $ | |||
AddLess: Income Taxes PaidCash Paid for InterestCash Received from CustomersCash Paid for Other Operating ExpensesCash Paid to Suppliers for GoodsNet cash received on FV-NI investment transactions | ||||
AddLess: | ||||
Cash Paid to Suppliers for GoodsCash Paid for InterestIncome Taxes PaidCash Received from CustomersCash Paid for Other Operating ExpensesNet cash received on FV-NI investment transactions | $ | |||
Cash Paid to Suppliers for GoodsCash Paid for InterestCash Paid for Other Operating ExpensesIncome Taxes PaidNet cash received on FV-NI investment transactionsCash Received from Customers | ||||
Cash Paid for Other Operating ExpensesCash Paid to Suppliers for GoodsCash Received from CustomersIncome Taxes PaidNet cash received on FV-NI investment transactionsCash Paid for Interest | ||||
Cash Paid for InterestCash Paid to Suppliers for GoodsCash Received from CustomersIncome Taxes PaidCash Paid for Other Operating ExpensesNet cash received on FV-NI investment transactions | ||||
Cash, January 1, 2020Cash Flows from Investing ActivitiesNet Cash Used by Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Used by Financing ActivitiesCash Flows from Financing ActivitiesNet Cash Provided by Investing ActivitiesCash Flows from Operating ActivitiesNet Decrease in CashNet Increase in CashNet Cash Used by Investing ActivitiesCash, December 31, 2020Net Cash Provided by Operating Activities | $ |
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