Question
Slight Corp The condensed comparative statement of financial position and income statement for Slight Corp as at for the year ended Dec. 31, 2021, are
Slight Corp
The condensed comparative statement of financial position and income statement for Slight Corp as at for the year ended Dec. 31, 2021, are as follows:
Fagan Corp | |||
Condensed Statement of Financial Position | |||
December 31 | 2021 | 2020 | Change |
ASSETS | |||
Current | |||
Cash | 9,500 | 25,000 | (15,500) |
Accounts receivable | 113,500 | 116,000 | (2,500) |
Inventory | 290,000 | 280,000 | 10,000 |
Prepaid expenses | 49,000 | 72,500 | (23,500) |
Total Current Assets | 462,000 | 493,500 | |
Non Current | |||
Investments | 200,000 | 150,000 | 50,000 |
Equipment | 340,000 | 280,000 | 60,000 |
Accumulated dep - equip | -130,000 | -149,000 | (19,000) |
Total Non-Current Assets | 410,000 | 281,000 | |
TOTAL ASSSETS | 872,000 | 774,500 | |
LIABILITIES | |||
Current | |||
Accounts Payable | 100,000 | 50,000 | 50,000 |
Unearned revenue | 42,000 | 32,000 | 10,000 |
Dividends payable | 10,000 | 16,000 | (6,000) |
Total Current Liabilities | 152,000 | 98,000 | |
Non Current | |||
Loans payable | 175,000 | 210,000 | (35,000) |
TOTAL LIABILITIES | 327,000 | 308,000 | |
Shareholders' Equity | |||
Common shares | 200,000 | 160,000 | 40,000 |
Retained earnings | 345,000 | 306,500 | 38,500 |
Total Shareholders' Equity | 545,000 | 466,500 | |
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | 872,000 | 774,500 | |
Slight Corp | |||
Condensed Income Statement | |||
For the year ended December 31 | |||
Sales revenue | 1,500,000 | ||
Operating expenses | 1,090,000 | ||
Depreciation expense | 62,500 | ||
Loss on sale of equipment | 5,800 | ||
Interest expense | 7,500 | ||
Income tax expense | 100,000 | 1,265,800 | |
Net income | $234,200 |
The following is additional information about Slight's transactions during the year ended December 31, 2021:
Equipment with a net carrying value of $180,000 was sold for cash and equipment was purchased for cash.
Investments were purchased for cash.
Common shares were issued of $35,000 to pay down the loan. The remaining common shares were issued for cash.
The only changes in retained earnings were for net income and dividends.
Slight Corp follows ASPE.
Required: A) Prepare the entire statement of cash flows in good form for Slight Corp for the year ended December 31, 2021. (Prepare the operating activities section using the indirect method.) Show your calculations below your statement.
B) Calculate cash received from customers in 2021.
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