Question
The comparative statement of financial position for Sandhill Retailers Ltd. follows: SANDHILLRETAILERS LTD. Statement of Financial Position December 31 Assets 2021 2020 Cash $ 0
The comparative statement of financial position for Sandhill Retailers Ltd. follows:
SANDHILLRETAILERS LTD. Statement of Financial Position December 31 | ||||||||
---|---|---|---|---|---|---|---|---|
Assets | 2021 | 2020 | ||||||
Cash | $ | 0 | $ | 16,000 | ||||
Accounts receivable | 79,000 | 54,000 | ||||||
Inventory | 221,000 | 167,000 | ||||||
Furniture | 137,000 | 167,000 | ||||||
Accumulated depreciation | (37,000 | ) | (46,000 | ) | ||||
Total assets | $ | 400,000 | $ | 358,000 | ||||
Liabilities and Shareholders Equity | ||||||||
Bank overdraft | $ | 21,000 | $ | 0 | ||||
Accounts payable | 69,000 | 49,000 | ||||||
Bank loan payable (noncurrent) | 86,000 | 101,000 | ||||||
Common shares | 51,000 | 61,000 | ||||||
Retained earnings | 173,000 | 147,000 | ||||||
Total liabilities and shareholders equity | $ | 400,000 | $ | 358,000 |
Additional information regarding 2021:
1. | Net income was $31,000. | ||
2. | Depreciation expense was $17,000. | ||
3. | During the year, the company did not receive any new bank loans. | ||
4. | During the year, the company did not purchase furniture but did sell some furniture for $8,000, which resulted in a gain on disposal of $4,000. | ||
5. | No common shares were issued during the year but some were repurchased at the cost at which they were originally issued. | ||
6. | During the year, the company paid all dividends declared. |
(a) Prepare a statement of cash flows using the indirect method for 2021. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
SANDHILL RETAILERS LTD. Statement of Cash Flows choose the accounting period Month Ended December 31, 2021Year Ended December 31, 2021December 31, 2021 | ||
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select an opening name for section one Cash, January 1Bank overdraft, December 31Cash flows from financing activitiesCash flows from investing activitiesCash flows from operating activitiesNet cash provided by financing activitiesNet cash provided by investing activitiesNet cash provided by operating activitiesNet cash used by financing activitiesNet cash used by investing activitiesNet cash used by operating activitiesNet decrease in cashNet increase in cash | ||
select an item Issue of common sharesIncrease in inventoryGain on disposal of furnitureDecrease in accrued expenses payableIssuance of bondsNet incomeIncrease in prepaid expensesPurchase of furnitureRepayment of bank loanFor InterestRepurchase of common sharesIncrease in accounts receivableFor Operating ExpensesTo SuppliersDecrease in accounts receivableIncrease in accrued expenses payablePayment of cash dividendsLoss on disposal of furnitureDecrease in accounts payableIncrease in accounts payableDecrease in inventoryFor Income TaxesProceeds from disposal of furnitureDepreciation expenseDecrease in prepaid expenses | $enter a dollar amount | |
Adjustments to reconcile net income to | ||
Select an opening subsection name Cash, January 1Bank overdraft, December 31Cash flows from financing activitiesCash flows from investing activitiesCash flows from operating activitiesNet cash provided by financing activitiesNet cash provided by investing activitiesNet cash provided by operating activitiesNet cash used by financing activitiesNet cash used by investing activitiesNet cash used by operating activitiesNet decrease in cashNet increase in cash | ||
select an item Repayment of bank loanDecrease in prepaid expensesTo SuppliersDecrease in accounts payableDecrease in accrued expenses payableDepreciation expenseNet incomeFor Operating ExpensesIssuance of bondsIncrease in accrued expenses payableIncrease in prepaid expensesIncrease in accounts receivableDecrease in inventoryGain on disposal of furnitureIncrease in accounts payableDecrease in accounts receivableProceeds from disposal of furnitureIncrease in inventoryIssue of common sharesFor Income TaxesLoss on disposal of furnitureFor InterestPurchase of furnitureRepurchase of common sharesPayment of cash dividends | $enter a dollar amount | |
select an item Issue of common sharesIncrease in inventoryIncrease in accounts receivableIncrease in prepaid expensesFor Operating ExpensesLoss on disposal of furnitureFor InterestDecrease in inventoryRepurchase of common sharesDecrease in accounts receivableIncrease in accrued expenses payablePurchase of furnitureTo SuppliersDepreciation expensePayment of cash dividendsIncrease in accounts payableNet incomeGain on disposal of furnitureDecrease in prepaid expensesDecrease in accrued expenses payableIssuance of bondsFor Income TaxesDecrease in accounts payableRepayment of bank loanProceeds from disposal of furniture | enter a dollar amount | |
select an item Increase in accounts receivableRepayment of bank loanIncrease in accounts payablePayment of cash dividendsDecrease in accounts receivableFor InterestRepurchase of common sharesTo SuppliersGain on disposal of furnitureFor Operating ExpensesFor Income TaxesIncrease in prepaid expensesDecrease in inventoryIncrease in accrued expenses payableDecrease in accounts payableNet incomeLoss on disposal of furnitureProceeds from disposal of furnitureDepreciation expenseIssuance of bondsDecrease in prepaid expensesPurchase of furnitureIncrease in inventoryDecrease in accrued expenses payableIssue of common shares | enter a dollar amount | |
select an item Proceeds from disposal of furnitureFor InterestIncrease in accounts receivableIncrease in accrued expenses payableDepreciation expenseIncrease in inventoryFor Income TaxesTo SuppliersIncrease in prepaid expensesDecrease in accounts receivableNet incomeRepayment of bank loanIssuance of bondsDecrease in prepaid expensesRepurchase of common sharesDecrease in accounts payableGain on disposal of furnitureDecrease in inventoryDecrease in accrued expenses payableLoss on disposal of furnitureIssue of common sharesIncrease in accounts payablePurchase of furniturePayment of cash dividendsFor Operating Expenses | enter a dollar amount | |
select an item Decrease in prepaid expensesPayment of cash dividendsDecrease in accounts receivableFor Operating ExpensesRepurchase of common sharesNet incomeDecrease in inventoryIssuance of bondsIncrease in prepaid expensesPurchase of furnitureTo SuppliersFor InterestIncrease in accrued expenses payableDecrease in accounts payableRepayment of bank loanIncrease in accounts receivableDepreciation expenseGain on disposal of furnitureFor Income TaxesDecrease in accrued expenses payableIssue of common sharesIncrease in inventoryIncrease in accounts payableLoss on disposal of furnitureProceeds from disposal of furniture | enter a dollar amount | |
enter a total amount of the adjustments |
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