Todd Corporation reported the following in its 20X4 financial statements:

Required:

1. Prepare the SCF using the indirect method. Assume that unexplained changes in the accounts are caused by logical transactions. Omit separate disclosure of cash paid for interest and income tax. The solution to this assignment features an optional spreadsheet.

2. Prepare the operating activities section of the SCF using the direct method.

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TODD CORPORATION Statement of Comprehensive Income For the year ended 31 December 20X4 Sales Cost of goods sold Depreciation expense Patent amortization Remaining expenses $624,000 (330,000) (48,000) (1,800) (106,200) $138,000 Net earnings and comprehensive income TODD CORPORATION Statement of Financial Position As of 31 December 20X4 20X3 Cash Investments, short term (common shares) Accounts receivable Inventory Investments, long term Property, plant, and equipment (net) Patent (net) Other assets $129,000 $ 90,000 102,000 60,000 126,000 90,000 60,000 354,000 16,200 360,000 18,000 200042.000 $835,200 $672,000 Total $132,000 52,200 120,000 267,000 72,000 Accounts payable Accrued expenses payable Bonds payable Common shares Retained earnings 240,000 210,000 264,000 150,000 $835,200 $672,000 Total