Swifty Inc is a major retailer of road bicycles and promoter of riding bicycles to work, both to save the environment and improve physical fitness, Financial statements for Swifty are presented below. 2021 2020 20.10 10.25 250 16.900 STATEMENT OF FINANCIAL POSITION December 31 Current Asset Cach 55.700 Accounts receive 24350 Inventory 21.900 Prepaid wenses 15.900 Total current assess 127.850 Property and Equipment Property ans equips 160.700 Less Accumulate depreciation 78.900 Net property and equier 81800 TOTAL PSSETS S209.650 10.900 58.250 150.700 10.000 20.700 $138.950 Current Liabilities Accounts Salaris payable Interesserable Total carrentabilities Loan payable Total Liabilities Shareholders' Equity Commonsharee Retained earning Total shareholders equity TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 12.100 10.900 2.350 25.250 100,700 126,050 16,000 8.900 3,350 28.250 60,700 88.950 9.100 74500 83,600 $209,450 300 49,700 50,000 $138,950 INCOME STATEMENT For the Year Ended December 31 2021 2020 Sales revenue 607,700 500.000 Cost of sales 412.000 250.000 Grozs margin 194700 150.000 Expenses Salary pense 136.000 125.000 Interest expense 2.500 2.400 Other expenses 4.000 2.000 Depreciation Es 14.900 8.000 Total penses 160,400 120.400 Operating incoms 24.300 11.600 Gainon disposal of equipment 1300 Income tax pense 6,400 1972 Net income S29200 99.429 The following is additional information concerning Swity's transactions during the year anded December 31, 2021 Equipment costing S40,000 was purchased by paying $24.000 cash and issuing 100 shares. Equipment costing $30,000 that was purchased at the beginning of 2020 was sold at the end of 2021 for $25.300 Straight line depreciation had been used with an expected asset life of 10 years and a residual value of $0 The other expenses relate to prepaid itams. In prder to supplement i Cash, Swifty borrowed an additional S40.000 and issued an additional 100 shares Cash dividends of $4,400 were paid at the end of the fiscal year. Cost of sales includes $130,000 of direct labour costs Swifty Inc. Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities 593700 Increase in Accounts Receivable Adjustment to reconcile net income to net cash provided by operating activities: Increase in Salaries Payable Decrease in Interest Payable Increase in Interest Payable 4500 Increase in Inventory Increase in Prepaid Expenses Increase in Prepaid Expenses Gain on Disposal of Equipment Gain on Disposal of Equipment Net Cash Provided by Operating Activities Cash Flows from Investing Activities Cash Paid for Purchase of Equipment (40000) Proceeds from Sale of Equipment 25300 Net Cash Provided by Investing Activities (14700) Cash Flows from Financing Activities Issuance of Common Shares in Partial Payment for Equipment 5200 40000 Advances on Loan Payable Payment of Dividends Net Cash Used by Financing Activities (4400) en Increase in Cash Opening Cash Balance 20100 Closing Cash Balance Non-cash investing and financing activities Issuance of Common Shares in Partial Payment for Equipment 5200
