The comparative unclassified statement of financial position for Puffy Ltd. follows: Additional information: 1. Profit was $115,000.

Question:

The comparative unclassified statement of financial position for Puffy Ltd. follows:

The comparative unclassified statement of financial position for Puffy Ltd.

Additional information:
1. Profit was $115,000.
2. Sales were $978,000.
3. Cost of goods sold was $751,000.
4. Operating expenses were $43,000, exclusive of depreciation expense.
5. Depreciation expense was $34,000.
6. Interest expense was $14,000.
7. Income tax expense was $26,000.
8. Land was sold at a gain of $5,000.
9. No equipment was sold during the year.
10. $50,000 of the bank loan was repaid during the year.
11. Common shares were issued for $25,000.
Instructions
Prepare a statement of cash flows using
(a) The indirect method, or
(b) The direct method, as assigned by your instructor?

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Related Book For  book-img-for-question

Financial Accounting Tools for Business Decision Making

ISBN: 978-1118644942

6th Canadian edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine

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