Whalen Inc's comparative balance sheet information at December 31, 2020 and 2019, and its income statement for the year ended December 31, 2020, are as follows: 3 4 5 6 Walentine Income Statement | | | S 881,000 570,000 311,000 $ 132,660 41,220 7 8 Sales 9 Cost of goods sold 10 Gross profit 11 Operating expenses 12 Depreciation expense 13 Operating Profit Loss on sale of 14 equipment 55 Investment income 6 Profit before taxes 7 Income taxes 3 Profit 173,880 137,120 12,670 19,520 143,970 18,000 125,970 $ Whalen Inc. Balance Sheet Information 31-Dec 2020 2019 Question 2 Question untian Intro Question 1 Net Change IX P48 B DIE Wusten ne Balance Sheet Information 31-Dre 2020 2019 42.000 $ 23,760 25,280 8,100 87120 31,410 113,040 77,520 25,280 75,600 15,600 21 22 23 24 25 Cash 26 Casli equivalents Accounts receivable 28 Inventory 39 Investment 30 Land Building and 1 equipment Accumulated 2 depreciation 3 Accounts payable Bonds payable Preferred shares Common shares Retained earnings Net Change $ 18,240 16,880 55,680 35,520 25,280 417,820 437340 19,520 112,050 90,960 21,090 36,600 25,310 18,000 11,290 18,000 80,400 404,880 132,240 80,400 404,880 65,300 66,940 During 2020, the following transactions occurred: 1. Purchased equipment for $20,500 cash. 2. Sold the investment on January 1, 2020, for $41,800, resulting in investment income of $18,020, 3. Sold equipment for $7,370 cash that had originally cost $38,520 and had $20,160 of accumulated depreciation. 4. Issued $21,000 of bonds payable at face value. 112,050 90,960 21,090 36,600 25,310 18,000 Accumulated depreciation Accounts payable Bonds payable Preferred shares Common shares Retained earnings 11,290 18,000 80,400 404,880 132,240 80,400 404,880 65,300 66,90 During 2020, the following transactions ocettrred: 1. Purchased equipment for $20,500 cash. 2. Sold the investment on January 1, 2020, for $11,800, resulting in investment income of $18,020. 3. Sold equipment for $7,370 cash that had originally cost $38,520 and had $20,160 of accumulated depreciation. 4. Issued $21,000 of bonds payable at face value. Required: Prepare a statement of cash flows for Whalen Inc. for the year ended December 31, 2020, using the indirect method (20 marks). Whalen Inc's comparative balance sheet information at December 31, 2020 and 2019, and its income statement for the year ended December 31, 2020, are as follows: 3 4 5 6 Walentine Income Statement | | | S 881,000 570,000 311,000 $ 132,660 41,220 7 8 Sales 9 Cost of goods sold 10 Gross profit 11 Operating expenses 12 Depreciation expense 13 Operating Profit Loss on sale of 14 equipment 55 Investment income 6 Profit before taxes 7 Income taxes 3 Profit 173,880 137,120 12,670 19,520 143,970 18,000 125,970 $ Whalen Inc. Balance Sheet Information 31-Dec 2020 2019 Question 2 Question untian Intro Question 1 Net Change IX P48 B DIE Wusten ne Balance Sheet Information 31-Dre 2020 2019 42.000 $ 23,760 25,280 8,100 87120 31,410 113,040 77,520 25,280 75,600 15,600 21 22 23 24 25 Cash 26 Casli equivalents Accounts receivable 28 Inventory 39 Investment 30 Land Building and 1 equipment Accumulated 2 depreciation 3 Accounts payable Bonds payable Preferred shares Common shares Retained earnings Net Change $ 18,240 16,880 55,680 35,520 25,280 417,820 437340 19,520 112,050 90,960 21,090 36,600 25,310 18,000 11,290 18,000 80,400 404,880 132,240 80,400 404,880 65,300 66,940 During 2020, the following transactions occurred: 1. Purchased equipment for $20,500 cash. 2. Sold the investment on January 1, 2020, for $41,800, resulting in investment income of $18,020, 3. Sold equipment for $7,370 cash that had originally cost $38,520 and had $20,160 of accumulated depreciation. 4. Issued $21,000 of bonds payable at face value. 112,050 90,960 21,090 36,600 25,310 18,000 Accumulated depreciation Accounts payable Bonds payable Preferred shares Common shares Retained earnings 11,290 18,000 80,400 404,880 132,240 80,400 404,880 65,300 66,90 During 2020, the following transactions ocettrred: 1. Purchased equipment for $20,500 cash. 2. Sold the investment on January 1, 2020, for $11,800, resulting in investment income of $18,020. 3. Sold equipment for $7,370 cash that had originally cost $38,520 and had $20,160 of accumulated depreciation. 4. Issued $21,000 of bonds payable at face value. Required: Prepare a statement of cash flows for Whalen Inc. for the year ended December 31, 2020, using the indirect method (20 marks)
