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The statement of income and unclassified statement of financial position for Cullumber Inc. follow: Cullumber Inc. Statement of Financial Position December 31 Assets 2024
The statement of income and unclassified statement of financial position for Cullumber Inc. follow: Cullumber Inc. Statement of Financial Position December 31 Assets 2024 2023 Cash $82,300 $48,100 Accounts receivable 80,200 36,400 Inventory 130,000 102,000 Estimated inventory returns 1,860 1,090 Long-term investments 96,200 108,000 Equipment 291,800 206,000 Accumulated depreciation (50,200) (40,400) Total assets $632,160 $461,190 Liabilities and Shareholders' Equity Accounts payable $63,400 $48,600 Property tax payable 11,000 18,400 Refund liability 930 700 Bank loan payable-current portion 127.000 60,300 Bank loan payable-non-current portion 14,100 10,000 Common shares 239,000 199,000 Retained earnings 176,730 124,190 Total liabilities and shareholders' equity $632,160 $461,190 Sales Cost of goods sold Gross profit Operating expenses Cullumber Inc. Statement of Income Year Ended December 31, 2024 $318,000 100,000 218,000 81,700 136,300 Income from operations Other income and expenses Interest expense $13,100 Realized loss on sale of long-term investments 6,600 19.700 Income before income tax 116,600 Income tax expense 27,720 Net income $88,880 Additional information regarding 2024: 1. Long-term investments were sold for $5,200, resulting in a realized loss of $6,600. 2. New equipment costing $142,000 was purchased for $71,200 cash and a $70,800 bank loan payable. 3. Equipment costing $56,200 was sold for $15,600, resulting in a gain of $8,800. 4. Accounts payable relate to merchandise suppliers; property tax payable relates to operating expenses. 5. A dividend was paid during the year. 6. Operating expenses include $59,200 of depreciation expense and an $8,800 gain on disposal of equipment. 7. The company issued common shares for $60,000 cash and bought back and retired some other common shares at the cost they were originally issued at. (a) Prepare the statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a-sign e.g. -15,000 or in parenthesis e.g. (15,000).) CULLUMBER INC. Statement of Cash Flows Cash Payments $ Note X to the Statement of Cash Flows: Equipment costing $ issuing a bank loan payable for $70,800. $ was purchased by paying $71,200 cash and
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