The condensed comparative statement of financial position and income statement (statements not in proper form) for Foundations Inc. as at/ for the year ended March 31, 2019, are as follows:
The following is additional information about Weekss transactions during the year ended December 31, 2018:
Styles FOUNDATIONS INC. Statement of Financial Position March 31, 2019 2018 $9,500 $12,500 40,000 58,000 0 Cash Accounts receivable Interest receivable Notes receivable Income tax receivable Inventory Investments - at cost Land Building 4,000 50,000 0 0 3,500 159,000 140,000 50,000 36,000 60,000 37,500 250,000 180,000 (120,000) (100,000) 80,000 92,000 (50,000) (66,000) $532,500 $393,500 Accumulated dep -building Equipment Accumulated dep- equip Total assets Accounts payable Accrued liabilities Unearned revenue Income tax payable $71,400 $62,000 12,600 14,000 20,400 16,000 8,600 0 Dividends payable Loans payable Total liabilities Common shares Retained earnings Total shareholders' equity Total liabilities and shareholders' 5,500 8,000 90,000 62,500 208,500162,500 170,00080,000 154,000151,000 8324,000 231,000 $532,500 $393,500 Subtle Em... Emphasis Intense E.. StrongQ Styles FOUNDATIONS INC. Income Statement for the Year Ended March 31, 2019 Sales Cost of merchandise sold Gross profit Salary & admin expense Interest expense Depreciation expense Interest income Loss on sale of equipment Gain on sale of land $810,000 486,000 324,000 192,000 7,100 44,000 (6,200) 4,200 (8,000) 29,000 262,100 Income tax expense Net income $61,900 Notes: 1. 2. 3. Land: Land with a cost of $10,000 was sold for cash and land was purchased for cash Building: A building was purchased in exchange for common shares. Equipment: Equipment with a cost of $48,000 was sold for cash and equipment was purchased for cash. Investments were purchased for cash. Loans were taken out and common shares were sold for cash. The only changes in retained earnings were for net income and dividends. 4. 5. Foundations Inc. follows ASPE. Required (a) Prepare the entire statement of cash flows in good form for Foundations Inc. for the year ended March. 31, 2019. Prepare the operating activities section using the indirect method. Ensure you show all your calculations below. (See (b) as well.) (b) Provide full calculations for the investing activities section. (c) Calculate for Foundations Inc. for the year ending March 31, 2019: (I) Cash received from customers (Il) Cash received for interest (llI) Cash paid for income taxes (net) (IV) Cash paid for interest Page 2 of 7
