Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The comparative unclassified statement of financial position for Cullumber Ltd. follows CULLUMBER LTD. Statement of Financial Position December 31 Assets 2018 Cash $55,000 Accounts receivable
The comparative unclassified statement of financial position for Cullumber Ltd. follows
CULLUMBER LTD. Statement of Financial Position December 31 Assets 2018 Cash $55,000 Accounts receivable 83,000 Inventory 177,000 Long-term investments 76,000 Equipment 250,000 Accumulated depreciation (65,000) Total assets $576,000 2017 $22,000 74,500 191,500 125,000 188,000 (30,000) $571,000 Liabilities and Shareholders' Equity Accounts payable $32,000 Bank loan payable 114,000 Common shares 215,000 Retained earnings 215,000 Total liabilities and shareholders' equity $576,000 $ 45,000 218,000 170,000 138,000 $571,000 Additional information: 1. Net income was $119,000. 2. Sales were $984,000. Cost of goods sold was $759,000. 4. Operating expenses were $43,000, exclusive of depreciation expense. Depreciation expense was $35,000. 6. Interest expense was $12,000. 7. Income tax expense was $22,000. 8. Long-term investments were sold at a gain of $6,000. 9. No equipment was sold during the year. 10. $104,000 of the bank loan was repaid during the year. 11. Common shares were issued for $45,000. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -45,000, or in parenthesis e.g. (45,000).) CULLUMBER LTD. Statement of Cash Flows-Indirect Method Year Ended December 31, 2018 v Net cash provided by operating activities Net income 119000 Adjustments to reconcile net income to Net cash used by operating activities Gain on sale of long-term investments Depreciation expense Increase in accounts receivable Increase in inventory Increase in accounts payableStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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