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The condensed Tinancial statements or Stauttner, appear below: STAUTTNER, INC. Statement of Financial Position December 31 Assets 2020 2019 Cash $55,036 $32,020 Accounts receivable 50,700
The condensed Tinancial statements or Stauttner, appear below: STAUTTNER, INC. Statement of Financial Position December 31 Assets 2020 2019 Cash $55,036 $32,020 Accounts receivable 50,700 48,360 Inventories 93,650 96,490 Prepaid expenses 5,070 4,840 Property, plant, and equipment 191,100 187,200 Accumulated depreciation (58,110) (56,160) Intangible assets 42,260 35,880 $379,706 $348,630 Liabilities and Shareholders' Equity Accounts payable Wages payable $36,500 $31,980 13,260 12,090 Income taxes payable 980 1,370 Bonds payable 74.100 85,800 Common shares 136,500 136,500 Common shares 136,500 136,500 Retained earnings 118,366 80,890 $379,706 $348,630 STAUTTNER, INC. Statement of Income Year Ended December 31, 2020 Sales $427,400 Cost of goods sold 269,100 Gross profit 158,300 Operating expenses $30,030 Depreciation expense 36,270 5,580 71,880 86,420 Loss on sale of equipment Profit from operations Less: Interest expense Profit before income tax 2,130 84,290 25,287 Income tax expense Net income $59,003 Additional information: 1. 2. 3. New equipment costing $55,380 was purchased for cash during the year. The increase in intangible assets is related to legal fees incurred to trademark new packaging designs, Accounts payable relate only to merchandise creditors. Operating expenses included wages expense of $24.960. Interest expense was paid in cash during the year. 4. 5. (a) Prepare a statement of cash flows for Stauttner Inc. using the direct method. Assume Stauttner follows IFRS and has chosen to classify interest paid and collected as operating activities and dividends received as operating activities while dividends paid are financing activities. (Show amounts that decrease cash flow with either a - sign e.8. -15,000 or in parenthesis e.g. (15,000).) STAUTTNER, INC. Statement of Cash Flows (Direct Method) Year Ended December 31, 2020 STAUTTNER, INC. Statement of Cash Flows (Direct Method) Year Ended December 31, 2020 $ $ 4
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