Villa Foods International provides food and beverage services to institutional facilities like school and hospitals. At the end of 2020, the income statement and comparative balance sheet were prepared as shown below. Villa Foods International Balance Sheet As at December 31 2020 2019 Assets Current Assets Cash 5354,070 $127800 Accounts 5231,000 $200,100 Receivable Food & Beverage $501,700 $456,100 Inventory Prepaid $24 100 524,100 Expenses Total Current $1,111,770 586,100 Assets Long-Term Assets Land So $23,000 Equipment $338,400 338,400 Accumulated 5-103,700 5-99,100 Depreciation Total Long-Term Assets $234,700 $262.900 Total Assets $1346,470 51131.000 Liabilities Current Liabilities Accounts Payable 5309,000 $325,700 Notes Payable 333 900 524,500 Current Portion Total Current $342,900 $350,200 Liabilities Notes Payable Long-Term $211,800 $19,500 Portion Total Liabilities $554,700 $548,700 Shareholders Equity Common Shares $295,000 $260,000 Retained $495.770 5322 300 Earnings Total Shareholders $791,770 $582,300 Equity Total Liabilities $1,346,470 $1131000 and Equity Additional Information: During 2020, land was sold for a loss of $3,300. There was no purchase of equipment throughout the year. The company did not pay off any amount of the notes payable. Villa Foods International Income Statement For the Year Ended December 31, 2020 Revenue $2,485,000 Cost of Sales $1,491,000 Gross Profit $994,000 Operating Expenses Depreciation Expense $4,600 Other Operating Expenses $652,300 Total Operating Expenses $656,900 Income from Operations $337,100 Other Income and Expenses Loss on Sale of Land $-3,300 Income before Income Tax $333,800 Income Tax $116,830 Net Income $216,970 rnational Cash Flow Statement For the Year Ended December 31, 2020 Cash Flow from Operating Activities 116830 Net Income x Adjustments for Non- Cash items 4600 Depreciation -3300 -28100 x 45600 Loss on Sale of tand Change in Current Assets and Current Liabilities Decrease in Accounts Receivable Increase in Food & Beverage Inventory Decrease in Accounts Payable Net Cash Provided (Used) by Operating Activities Cash Flow from Investing Activities - 16700 -3300 Sale of Land Net Cash Provided (Used) by Investing Activities Cash Flow from Financing Activities Proceeds from Notes Payable Payment of Cash Riviend 9400 x 9400 X Proceeds from Notes Payable Payment of Cash Dividend Issue of Common Shares Net Cash Provided (Used) by Financing Activities Net Increase (Decrease) in Cash Cash at the Beginning of the Year Cash at the End of the Year
