Swifty House Inc. had the following condensed statement of financial position at December 31, 2019: SWIFTY HOUSE INC. Statement of Financial Position December 31, 2019 Cash Current assets (non-cash) Bond investment at amortized cost Plant assets (net) Land $10.900 34,850 40,800 58,300 39,050 $183,900 Current liabilities Long-term notes payable Bonds payable Common shares Retained earnings $15,300 30,900 32,550 80,800 24,350 $183,900 Swifty House Inc. follows IFRS and chooses to classify dividends paid as financing activities and interest paid as operating activities on the statement of cash flows. During 2020, the following occurred: 1. 2. 3. 4. 5. Swifty House Inc. sold part of its investment portfolio in bonds for $17,000, resulting in a gain of $440. Dividends totalling $17,500 were paid to shareholders. Dividends paid are treated as financing activities. A parcel of land, to be used as a parking lot, was purchased for $4,600. Common shares were issued for cash totalling $19,800. Bonds payable of $9,400 were retired at par. Equipment was purchased through the issuance of $22,000 of bonds. Net income for 2020 was $50,000 after allowing for depreciation on Swifty House Inc's plant assets of $14.150. The amount of interest paid during 2020 was $4,300 and the amount of income taxes paid was $20,000. Both current assets (other than cash) and current liabilities remained at the same amount. 6. 7. 8. Prepare a statement of cash flows for 2020 using the indirect method. (Show amounts that decrease cash flow with either as a-sign e.g.-15,000 or in parenthesis e.g. (15,000).) SWIFTY HOUSE INC. Statement of Cash Flows (Indirect Method) For the Year Ended December 31, 2020 Cash Flows from Operating Activities $ 50000 Net Income /(Loss) Adjustments to reconcile net income to net cash provided by operating activities: Depreciation Expense $ 14150 Gain on Disposal of Investment in Bonds -440 13710 Net Cash Provided by Operating Activities 63710 Cash Flows from Investing Activities Proceeds on Sale of Investment in Bonds 17000 Purchase of Land -4600 Net Cash Provided by Investing Activities 16540 Cash Flows from Financing Activities Payments to Retire Bonds Payable 9400 Dividends Paid - 17500 Proceeds from Issuance of Common Shares 19800 Net Cash Provided by Financing Activities 11700 Net Increase in Cash 91950 Cash Balance, January 1, 2020 10900 Cash Balance, December 31, 2020 $ 102850 Non-Cash Investing and Financing Activities $ -4300 Cash Paid During the Year for Interest Supplemental disclosures of cash flow information: Cash Paid During the Year for Interest 20000 Net Income /(Loss) 78550 e Textbook and Media Your answer is partially correct. Prepare a condensed statement of financial position at December 31, 2020, for Swifty House Inc. (List Assets in order of liquidity.) SWIFTY HOUSE INC. Statement of Financial Position December 31, 2020 Assets Cash $ 102850 Current Assets Other than Cash 34850 Bond Investment at Amortized Cost 23800 Plant Assets (Net) 66150 Land 43650 $ 271300 Liabilities and Equity Current Liabilities $ 15300 Long-Term Notes Payable 30900 Bonds Payable 45150 Common Shares 123100 Retained Earnings 56850 $ 271300