Solar Electric Inc.

Balance Sheet $32$ Marks ACB

As at December $31,2023$

Account Title Debit Credit

Assets

Current Assets

Cash $100,649$

Accounts Receivable $35,860$

Interest Rceivable $9,113$

Prepaid Insurance $7,370$

Short$-$Term Investment$-$ Citi Inc $237,000$

Short$-$Term Investment$-$ Bonds $135,000$

Inventory $90,640$

Valuation Allowance for Fair Value Adjustment $50,700$

Total Current Assets $666,332$

Non$-$current Assets

Investment in HSBC Inc. Common Shares $503,840$

Long$-$Term Investment$-$ Bond $145,000$

Property, Plant & Equipment $280,000$

Accumulated Depreciation $86,000$

Total Non$-$Current Assets $842,840$

Total Assets $1,509,172$

Liabilities

Current Liabilities

Accounts Payable $212,400$

Interest Payable $31,167$

Unearned Revenue $21,000$

Total Current Liabilities $264,567$

Long$-$Term Liabilities

Bonds Payable $340,000$

Discount on Bonds Payable $15,741$

Bank Loan $225,000$

Total$-$Long Term Liabilities $549,259$

Total Liabilities $813,826$

Shareholders Equity

Common Shares $362,000$

Preferred Shares $80,000$

Retained Earnings $348,385$

Total Shareholders Equity $790,385$

Total Liabilities & Shareholders Equity $1,604,211$

Using the balance sheet from the end of last year $($when the company was still a proprietorship$)$ and the balance sheet just created, prepare a cash flow statement using the indirect method. Round answers to the nearest whole number.

Note: No Property, Plant and Equipment was sold during the year.

Hint : Amortized bond discount or premium should be added to the operating activities, if there is any. Carrying amount of the bonds should be presented in the financing activities.

Solar Electric Inc.

Cash Flow Statement $26$ Marks

For the Year Ended December $31,2023$