The following partial statement of financial position and statement of comprehensive income balances are provided for the Prescott Corporation as at December 31, 20x5: SAR Liability DIT Liability Common Stock Contributed Surplus - Common Stock Repurchases Retained Earnings Dec 31, 20x5 335.000 285,000 ? ? ? Dec 31, 20x4 278,000 360,000 5,400,000 80,000 6,890,000 The SAR liability arises from a grant made on January 2, 20x3. The grant vested on December 30, 20x5. On December 31, 20x5, a total of 3,000 SAR's were cashed out at a cost of $90,000 There were a total of 450,000 common shares issued and outstanding at December 31, 20x4. The following common share transactions occurred during the year: March 30: issued 100,000 shares for total proceeds of $1,800,000 October 31: repurchased 15,000 shares at a cost of 300,000 Dividends of $1.50 per share were declared to shareholder of record on June 30 and December 30 (i.e. a total dividend of $3 per common share if the share was outstanding all year). Dividends are typically paid 15 days after the date of declaration. The net income for the year was $3,540,000. Required - a) b) For each of the accounts above, reconcile the opening to the ending balance. Calculate the missing amounts (?) Round any book value per share amounts to 2 decimals. Hint: use t-accounts to work through it. Provide the adjustments that would be required in the calculation of the Cash Flow from Operations section of the Statement of Cash Flow as a result of the activity in part a). Assume Prescott uses the indirect method. Prepare the Cash Flow from Financing section of the Statement of Cash Flow. c) The following partial statement of financial position and statement of comprehensive income balances are provided for the Prescott Corporation as at December 31, 20x5: SAR Liability DIT Liability Common Stock Contributed Surplus - Common Stock Repurchases Retained Earnings Dec 31, 20x5 335.000 285,000 ? ? ? Dec 31, 20x4 278,000 360,000 5,400,000 80,000 6,890,000 The SAR liability arises from a grant made on January 2, 20x3. The grant vested on December 30, 20x5. On December 31, 20x5, a total of 3,000 SAR's were cashed out at a cost of $90,000 There were a total of 450,000 common shares issued and outstanding at December 31, 20x4. The following common share transactions occurred during the year: March 30: issued 100,000 shares for total proceeds of $1,800,000 October 31: repurchased 15,000 shares at a cost of 300,000 Dividends of $1.50 per share were declared to shareholder of record on June 30 and December 30 (i.e. a total dividend of $3 per common share if the share was outstanding all year). Dividends are typically paid 15 days after the date of declaration. The net income for the year was $3,540,000. Required - a) b) For each of the accounts above, reconcile the opening to the ending balance. Calculate the missing amounts (?) Round any book value per share amounts to 2 decimals. Hint: use t-accounts to work through it. Provide the adjustments that would be required in the calculation of the Cash Flow from Operations section of the Statement of Cash Flow as a result of the activity in part a). Assume Prescott uses the indirect method. Prepare the Cash Flow from Financing section of the Statement of Cash Flow. c)
