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The comparative, unclassified statement of financial position for Widget Ltd. shows the following balances at December 31: 2018 2017 Assets Cash $ 5,000 $ 36,000
The comparative, unclassified statement of financial position for Widget Ltd. shows the following balances at December 31: 2018 2017 Assets Cash $ 5,000 $ 36,000 Term deposits (maturing in 60 days) -0- 42,000 Accounts receivable 75.000 40,000 Inventory 101.000 70.000 Land 180,000 230,000 Buildings 923,000 524,000 Accumulated depreciation- buildings (136,000) (190,000) Equipment 100,000 70,000 Accumulated depreciation- equipment (41,000) (20,000) Total assets $1,207,000 $802,000 Liabilities and Shareholders' Equity Accounts payable $ 29,000 $ 72,000 5,000 3,000 Income tax payable 18,000 Interest payable 13,000 56,000 40,000 Bank loan payable-current portion 891,000 420,000 Bank loan payable-non- current portion Common shares 160,000 180,000 Retained earnings 50,000 72.000 Total liabilities and shareholders' equity $1,207,000 $802,000 Additional information regarding 2018: 1.Net income was $10,000. 2.A loss of $21,000 was recorded on the disposal of a small parcel of land. No land was purchased during the year. 3.A gain on disposal of $15,000 was recorded when an old building was sold for $40,000 cash. A new building was purchased for $520,000 and depreciation expense on buildings for the year was $42,000. 4.Equipment costing $72,000 was purchased while a loss of $11,000 was recorded on equipment that originally cost $42,000 and was sold for $21,000. 5.The company received $512,000 from new bank loans during the year. 6.Dividends were declared and paid during the year. 7. No common shares were issued during the year, but some were bought back and retired at the amount they were originally issued at. Prepare the cash flow statement, using the indirect method, for Widget Ltd. for the 4.Equipment costing $72,000 was purchased while a loss of $11,000 was recorded on equipment that originally cost $42,000 and was sold for $21,000. 5.The company received $512,000 from new bank loans during the year. 6.Dividends were declared and paid during the year. 7.No common shares were issued during the year, but some were bought back and retired at the amount they were originally issued at. Prepare the cash flow statement, using the indirect method, for Widget Ltd. for the year ended December 31, 2018
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