Question
This assignment is due soon, I want to check my answers before I submit them. Please make sure to answer within 15 to 40 min.
This assignment is due soon, I want to check my answers before I submit them. Please make sure to answer within 15 to 40 min. Please submit what you have within 40 min, or this question is wasted and will be thumbed down. Thank you for your help in advance!
The condensed comparative statement of financial position and income statement for Nguyen Inc. as at/ for the year ended Dec. 31, 2021, are as follows:
Nguyen Inc. | |||
Condensed Statement of Financial Position | |||
December 31, | 2021 | 2020 | |
Cash | $950 | $2,500 | |
Accounts receivable | 11,350 | 11,600 | |
Inventory | 29,000 | 28,000 | |
Prepaid expenses | 4,900 | 7,250 | |
Equipment | 34,000 | 28,000 | |
Accumulated dep - equip | -13,000 | -14,900 | |
Total assets | $67,200 | $62,450 | |
Unearned revenue | 4,200 | 3,200 | |
Dividends payable | 1,000 | 1,600 | |
Loans payable | 7,500 | 11,000 | |
Common shares | 20,000 | 16,000 | |
Retained earnings | 34,500 | 30,650 | |
Total liabilities & share equity | $67,200 | $62,450 | |
|
| ||
Nguyen Inc. | |||
Condensed Income Statement | |||
for the Year Ended December 31, 2021 | |||
Sales revenue |
| $150,000 | |
Operating expenses | 109,000 | ||
Depreciation expense | 6,250 |
| |
Loss on sale of equipment | 580 |
| |
Interest expense | 750 |
| |
Income tax expense | 10,000 | 126,580 | |
Net income |
| $23,420 |
The following is additional information about Nguyens transactions during the year ended
December 31, 2021:
- Equipment with a net carrying value of $18,000 was sold for cash and equipment was purchased for cash.
- Common shares were issued of $3,500 to pay down the loan. The remaining common shares were issued for cash.
- The only changes in retained earnings were for net income and dividends.
Nguyen Inc. follows ASPE.
Required:
- Calculate cash received from customers in 2021.
- Prepare the entire statement of cash flows in good form for Nguyen Inc. for the year ended
December 31, 2021. (Prepare the operating activities section using the indirect method.)
- Show your calculations below your statement.
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