Whiskey Industries Ltd., a Nanaimo, British Columbia-based company, has a December 31 year end. The company's comparative statement of financial position and its statement of income for the most recent fiscal year are presented here, along with some additional information: 1. 2. During the year, Whiskey Industries sold, for $580 cash, equipment that had an original cost of $1,160 and a net carrying amount of $230. Whiskey Industries borrowed an additional $9,280 by issuing notes payable in 2020. During the year, the company purchased a piece of land for a future manufacturing site for $232,000. The land was purchased with no money down and the company entered into a mortgage payable for the full amount. 3. WHISKEY INDUSTRIES LTD. Statement of Financial Position As at December 31, 2020 2020 2019 $22,620 23,200 580 $7,020 11,600 700 46,400 65,720 184,440 (80,270) 232,000 $401,890 34,800 81,200 116,000 (58,000) 0 $139,200 Assets Current assets Cash Accounts receivable Prepaid rent Inventory Total current assets Manufacturing equipment Accumulated depreciation, manufacturing equipment Land Total assets Liabilities and shareholders'equity Current liabilities Accounts payable Wages payable Dividends payable Total current liabilities Mortgage payable Notes payable Common shares Retained earnings Total liabilities and shareholders' equity $6,960 460 350 7,770 $12,760 700 550 14,010 232,000 53,360 33,640 68,880 $401,890 0 46,400 29,000 56,030 $139,200 WHISKEY INDUSTRIES LTD. Statement of Income For the year ended December 31, 2020 Sales $150,800 Cost of goods sold 92,800 Gross margin 58,000 Expenses Rent expense 8,240 Wages expense 11,140 Depreciation expense 23,200 Interest expense 700 Income tax expense 600 Gain on sale of equipment (350) Net income $14,470 Using the information above, prepare the statement of cash flows for Whiskey Industries Ltd. for the year ended December 31, 2020, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. - 15,000 or in parenthesis e.g. (15,000).) WHISKEY INDUSTRIES LTD Statement of Cash Flows, Indirect Method For the Year Ended December 31, 2020 $ WHISKEY INDUSTRIES LTD Statement of Cash Flows, Indirect Method For the Year Ended December 31, 2020 $ Decrease in Accounts Payable Decrease in Accounts Receivable Decrease in Inventory Decrease in Prepaid Rent Decrease in Wages Payable Depreciation Expense Dividend Paid Gain on Sale of Equipment Increase in Accounts Payable Increase in Accounts Receivable Increase in Inventory Increase in Prepaid Rent Increase in Wages Payable Issuance of Common Shares Issuance of Notes Payable Loss on Sale of Equipment Net Income Proceeds from the Sale of Equipment Purchase of Equipment Repayment of Notes Payable + $ Supplementary disclosures: Cash paid for interest $ $ Cash paid for income tax Non-cash investing and financing activities: During the year, land with a value of $ was acquired by signing a mortgage payable for the full amount
