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The income statement and unclassified statement of financial position for Oriole, Inc. follow: ORIOLE, INC. Statement of Financial Position December 31 2017 Assets Cash Held
The income statement and unclassified statement of financial position for Oriole, Inc. follow: ORIOLE, INC. Statement of Financial Position December 31 2017 Assets Cash Held for trading investments Accounts receivable Inventory Prepaid expenses Property, plant, and equipment Accumulated depreciation 2018 $97200 $47100 120000 116000 75500 123200 19000 275000 258000 (45500) (52300) 42500 92800 28600 $664400 $532700 Total assets Liabilities and Shareholders' Equity Accounts payable Accrued liabilities Bank loan payable Common shares Retained earnings Total liabilities and shareholders' equity $90000 $73200 7200 105600 157800 210000 170000 247000 124500 $532700 11800 $664400 ORIOLE, INC. Income Statement Year Ended December 31, 2018 $573950 Sales Cost of goods sold Gross profit Operating expenses Income from operations Other revenues and expenses Unrealized gain on held for trading investments Interest expense Income before income tax Income tax expense Net income 185550 38840 116440 271960 $4000 (4700) 700 271260 42000 $229260 Additional information: 1. Prepaid expenses and accrued liabilities relate to operating expenses. 2. An unrealized gain on held for trading investments of $4000 was recorded. 3. New equipment costing $80000 was purchased for $21300 cash and a $58700 long-term bank loan payable 4. Old equipment having an original cost of $63000 was sold for $1100 5. Accounts payable relate to merchandise creditors. 6. Some of the bank loan was repaid during the year 7. A dividend was paid during the year. 8. Operating expenses include $46700 of depreciation expense and a $8400 loss on disposal of equipment. Prepare the statement of cash flows, using the direct method. (Show amounts that decrease cash flow with either -sign e.g.-15,000 or in parenthesis e.g. (15,000).) ORIOLE, INC. Statement of Cash Flows-Direct Method Cash Payments Note X to the Statement of Cash Flows: During the year, the company purchased equipment costing $ by paying $21300 cash and issuing a $58700 bank loan payable
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