SWIFTY INC. Statement of Financial Position June 30, 2020 Assets Cash Accounts receivable Inventory Prepaid expenses FV-OCI investments Equipment Accumulated depreciation-equipment Total Liabilities and Shareholders' Equity June 30 2020 2019 $ 20,000 $ 44,000 87,000 74,000 103,000 101,300 2,200 6,000 47,400 45,400 174,000 160,000 (36,000) (23,400) $ 397,600 $ 407,300 Accounts payable Income tax payable $ 105,000 $ 99,500 1,600 3,400 Income tax payable Dividends payable Long-term notes payable Common shares Retained earnings Accumulated other comprehensive income Total SWIFTY INC. Statement of Comprehensive Income For the Year Ended June 30, 2020 Net sales $315,000 Cost of goods sold 167,000 Gross profit 148,000 Operating expenses 116,000 Income from operations 32,000 1,600 3,400 4,600 0 89,400 121,500 30,800 25,900 154,900 147,700 11,300 9,300 $ 397,600 $ 407,300 2.02/10 Income from operations 32,000 Interest expense 8,100 Income before income tax 23,900 Income tax 5,300 Net income 18,600 Other comprehensive income Unrealized gain or loss-OCI 2,000 Comprehensive income $ 20,600 Additional information: 1. Swifty follows IFRS. Assume that interest is treated as an operating activity for purposes of the statement of cash flows. 2. Operating expenses include $12,600 in depreciation expense. 3. There were no disposals of equipment during the year. 4. Common shares were issued for cash. 5. During the year, Swifty acquired $7,700 of equipment in exchange for long-term notes payable. Statement of Cash Flows For the Year Ended June 30, 2020 Cash Flows from Operating Activities Net Income/(Loss) Adjustments to reconcile net income to net cash provided by operating activities: Depreciation Expense Increase in Accounts Receivable Decrease in Inventory Decrease in Prepaid Expenses Increase in Accounts Payable Decrease in Income Taxes Payable v $ 18600 2.02/10 Net Cash Provided by Operating Activities Cash Flows from Investing Activities Purchase of Equipment Net Cash Provided by Investing Activities Net Cash Provided by Financing Activities Payment of Cash Dividends Issuance of Common Shares Increase in Accounts Pavable Cash Flows from Financing Activities Net Decrease in Cash 2.027 Net Decrease in Cash Cash at Beginning of Year Cash at End of Year During the year, equipment with a cost of $ Cash paid during the year for interest $ Cash paid during the year for taxes $ eTextbook and Media Your answer is incorrect. 2.02/10 was purchased in exchange for Inote payable. miftuurion the direct method. (Show amounts that 2.02710 Prepare the operating activities section of the statement of cash flows for Swifty 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).) SWIFTY INC. Statement of Cash Flows Cash Flows from Operating Activities Cash Received from Customers Cash Paid to Suppliers Cash Paid for Operating Expenses v Cash at End of Year