In 2010, Sudbury Wolverine Comics Ltd. (SWC) sold some furniture for $6,000. It had cost $10,000 and had accumulated depreciation of $4,000 associated with it. In the same year, SWC also sold a truck for $12,000 (cost: $54,000; accumulated depreciation $45,000).

Required:
(a) Calculate the gain or loss on the sale of the truck and on the sale of the furniture.
(b) Calculate the cost of the new trucks purchased.
(c) Prepare the 2010 statement of cash flow.

Transcribed Image Text:

Sudbury Wolverine Comics Ltd ncome Statement for the year ended December 31, 2010 Sales Cost of goods sold Gross profit Add: Gain on sale of truck Less: Depreciation expense Less: Other expenses Net income $ 900,000 350,000 550,000 3,000 (65,000) (67,000) 421,000 Sudbury Wolverine Comics Ltd Statement of Retained Earnings for the year ended December 31, 2010 Retained earnings, Jan. 1 Net income Less: Dividends Retained earnings, Dec. 31 106,500 421,000 (12,500) 515,000 Sudbury Wolverine Comics Ltd Balance Sheet as at December 31 2009 135,000 63,500 120,000 110,000 120,000 350,000 2010 Cash Accounts receivable Inventory Land Buildings Accumulated depreciation-Buildings Furniture and equipment Accumulated depreciation-F & E Trucks Accumulated depreciation-Trucks Total assets 210,000 145,000 120,000 400,000 (125,000) 110,000 (55,000) 325,000 (100,000) 120,000 254,000 S 1,165,000 873,500 (110,000) (49,000) (105,000 Accounts payable Bonds payable, 2025 Common shares Retained earnings Total liabilities and shareholders' equity 300,000 250,000 515,000 $ 1,165.000 100,000 87,000 30,000 250,000 106,500 873,500