The following information is provided for Carlas Cleaning Corp., which reports under ASPE: Additional information: 1. Profit
Question:
The following information is provided for Carla’s Cleaning Corp., which reports under ASPE:
Additional information:
1. Profit for 2024 was $110,625.
2. Common shares were issued for $53,750.
3. Land with a cost of $53,750 was sold at a loss of $20,300.
4. Purchased land with a cost of $113,000 with a $58,750 down payment and financed the remainder with a mortgage note payable.
5. No equipment was sold during 2024.
6. Net sales for the year were $675,600.
7. Cost of goods sold for the year was $401,800.
8. Operating costs, including depreciation expense, were $99,700.
9. Interest expense was $6,300.
10. Income tax expense was $36,875.
11. Accounts payable is used for merchandise purchases.
Instructions
Prepare a cash flow statement for the year using the direct method.
Indicate what transactions might be classified differently if the company were reporting under IFRS instead of ASPE.
Step by Step Answer:
Accounting Principles Volume 2
ISBN: 9781119786634
9th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak