Question
The comparative balance sheets for Floofly Blankets Ltd. appear below: Dec 31, 2020 Dec. 31, 2019 Assets Cash $29,000 $10,000 Trade receivables 23,000 14,000 Prepaid
The comparative balance sheets for Floofly Blankets Ltd. appear below:
Dec 31, 2020 Dec. 31, 2019
Assets Cash $29,000 $10,000
Trade receivables 23,000 14,000
Prepaid expenses 6,000 9,000
Inventory 25,000 15,000
Long-term investments 0 23,000
Equipment 57,000 30,000
Accumulated depreciation-equipment (18,000) (14,000)
Total assets $122,000 $87,000
Liabilities and Shareholders' Equity Trade payables $21,000 $9,000
Mortgage notes payable 37,000 45,000
Common shares 40,000 23,000
Retained earnings 24,000 10,000
Total liabilities and shareholders' equity $122,000 $87,000
Additional information: 1. Net earnings for the year ending December 31, 2021 were $32,000.
2. Cash dividends of $13,000 were declared and paid during the year ended December 31 2021.
3. Long-term investments that had a carrying amount of $18,000 were sold for $18,000 in 2021.
Prepare a cash flow statement for inclusion in the year end financial statements, using the indirect method.
The comparative balance sheets for Floofly Blankets Ltd. appear below:
Dec 31, 2020 Dec. 31, 2019
Assets Cash $29,000 $10,000
Trade receivables 23,000 14,000
Prepaid expenses 6,000 9,000
Inventory 25,000 15,000
Long-term investments 0 23,000
Equipment 57,000 30,000
Accumulated depreciation-equipment (18,000) (14,000)
Total assets $122,000 $87,000
Liabilities and Shareholders' Equity Trade payables $21,000 $9,000
Mortgage notes payable 37,000 45,000
Common shares 40,000 23,000
Retained earnings 24,000 10,000
Total liabilities and shareholders' equity $122,000 $87,000
Additional information: 1. Net earnings for the year ending December 31, 2021 were $32,000.
2. Cash dividends of $13,000 were declared and paid during the year ended December 31 2021.
3. Long-term investments that had a carrying amount of $18,000 were sold for $18,000 in 2021.
Prepare a cash flow statement for inclusion in the year end financial statements, using the indirect method.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started