Question
White Horse Ltd. has prepared the following comparative statements of financial position at December 31, 2019 and 2020: White Horse adheres to ASPE. 20202019 Cash$150,000$109,000
White Horse Ltd. has prepared the following comparative statements of financial position at December 31, 2019 and 2020: White Horse adheres to ASPE.
20202019
Cash$150,000$109,000
Accountsreceivable53,00039,000
Inventory50,00060,000
Prepaidexpenses6,0009,000
Property, plant &equipment420,000350,000
Accumulateddepreciation(150,000)(125,000)
$ 529,000$442,000
Accountspayable$51,000$ 56,000
Accruedliabilities20,00014,000
Mortgagepayable150,000
Preferredshares215,000
Commonshares200,000200,000
Retained earnings43,00022,000
$ 529,000$ 442,000
Additional information:
- There were no disposals of property, plant and equipment, but new equipment was purchased during 2020.
- Depreciation expense was included in operating expenses.
- Cash dividends declared and paid for the year.
The condensed income statement for 2020 is as follows:
Sales$ 660,000
Cost of sales363,000
Grossprofit297,000
Operating expenses230,000
Netincome$67,000
Using the above information make a statement of cash flows in proper format using indirect method for period ending December. 31, 2020.
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