Savary Limited is a private company reporting under ASPE. Its comparative balance sheet at December 31 is
Question:
Savary Limited is a private company reporting under ASPE. Its comparative balance sheet at December 31 is as follows:
Additional information:
1. Profit for 2021 was $200,000.
2. Equipment was purchased during the year. No equipment was sold.
3. Cash dividends were paid to the common shareholders during the year.
Instructions
Prepare the cash flow statement using the indirect method.
SAVARY LIMITED Balance Sheet December 31 Assets 2021 2020 $ 114,000 $ 85,000 Cash Accounts receivable 750,000 600,000 Inventory Prepaid insurance Equipment and vehicles Accumulated depreciation 500,000 330,000 18,000 25,000 1,250,000 1,000,000 (350,000) (280,000) $2,282,000 Total assets $1,760,000 Liabilities and Shareholders' Equity $ 226,000 $ 200,000 Accounts payable Salarles payable Interest payable Notes payable 30,000 40,000 26,000 20,000 500,000 350,000 Common shares 600,000 400,000 Retained earnings 900,000 750,000 Total liabilities and shareholders' equity $2,282,000 $1,760,000
Step by Step Answer:
1 Profit was 200000 and retained earnings only increased by 150000 so 50000 in dividends ...View the full answer
Accounting Principles Volume 2
ISBN: 978-1119502555
8th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
Related Video
In order to determine the amount of cash created by operating operations, the indirect technique for preparing the statement of cash flows entails adjusting net income with changes in balance sheet.
Students also viewed these Business questions
-
The following is Mann Corp.s comparative balance sheet at December 31, 2011, and 2010, with a column showing the increase (decrease) from 2010 to 2011: Additional information: 1. On December 31,...
-
The accountant for Ellery Co., a private company reporting under ASPE, recorded the following journal entries: 1. A building with a cost of $75,000 is reported at its fair value. The following entry...
-
The accountant for Ellery Co., a private company reporting under ASPE, recorded the following journal entries: 1. Land with a cost of $75,000 is reported at its fair value. The following entry was...
-
There are three mutually exclusive projects, where the basic information is provided below. Assume a DN alternative does not exist. Initial Cost Annual net profit Useful Life Salvage value A $25,000...
-
Grid-clustering techniques are different from other clustering techniques in that they partition space instead of sets of points. (a) How does this affect such techniques in terms of the description...
-
Go to the 11 transactions given in Newcombe Ltd (Practice problem C in Chapter 3) and complete the following tasks. 1. Prepare a set of ledgers. Use the opening balances given in the balance sheet,...
-
Juliette Shulof Furs (JSF) was a New York corporation that had been in the fur-dealing business for 15 years. George Shulof, an officer of JSF, attended two auctions conducted by Finnish Fur Sales...
-
Preparing master and flexible budgets Sexton Manufacturing Company established the following standard price and cost data. Sexton planned to produce and sell 2,000 units. Actual production and sales...
-
The downward acceleration of a 50-kg stuntwoman near the end of a fall from a very high building is 5.8 m/s2 . What resistive force does the air exert on her body at that point.
-
Which histograms are skewed to the left? Refer to histograms A through H in Figure 2.12. 2.0 -50 0.0 1.0 3 150 5 15 25 D -1 -3 8 14 -7 -4 -1 G Figure 2.12 Eight histograms LO 09 007 01 08 01 250 09...
-
Presented below is the comparative balance sheet for Diatessaron Inc., a private company reporting under ASPE, at December 31, 2021, and 2020: Additional information: 1. Cash dividends of $15,000...
-
The following was reported in Sanaz Ltd.?s 2021 financial statements: Calculate cash payments for dividends. 2021 2020 Dividends payable Retained earnings Profit 261,000 $ 20,000 114,000 197,000
-
1. Consider the graph of y = 1 rx / 1 - r (a) Use g graphing utility to graph y = for r = 1 / 2, 3 / 2, and 4 / 5. What happens as x ? (b) Use the graphing utility to graph y for r = 1.5, 2, and 3....
-
3. Convert the following decimal numbers to 8-bit binary (a) sign magnitude and (b) twos complement numbers. You must show all of your work in deriving your answer. i. -34 ii. -45 +23 iv. -62
-
A student regressed Y against both X and X 2 and obtained the following output tables. Because X 2 is not significant at the 0.05 level, the student reran the regression after dropping X 2 and...
-
How does Toyota's product-focused structure affect its decision-making process? For example, does it allow the company to respond more quickly to changes in the market or to customer needs?
-
John is buying a house for 2,800,000 kr. He would like to know what down payment he needs if he takes the highest possible mortgage loan and bank loan What down payment does he need if the bond price...
-
Provide you own definition for each following term and indicate whether the term evokes positive feelings for you or negative ones. now ask friends or classmates to do same are there differences?...
-
You are flying in an ultralight aircraft at a speed of 39 m/s. An eagle, whose speed is 18 m/s, is flying directly toward you. Each of the given speeds is relative to the ground. The eagle emits a...
-
Is it ethical to provide safety training in English to immigrant workers who speak little English, in order to reduce costs?
-
On January 1, 2021, the ledger of Edmiston Software Company contains the following liability accounts: Accounts Payable ........................ $42,500 GST Payable...
-
On January 1, 2021, the ledger of Accardo Company contains the following liability accounts. Accounts Payable ............................. $52,000 HST Payable...
-
Udala Ukes had the following transactions involving notes payable. July 1, 2021 Borrows $50,000 from First National Bank by signing a nine-month, 8% note. Nov. 1, 2021 Borrows $60,000 from...
-
You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15, 2019. The bonds have a par value of $2,000 and semiannual...
-
Which of the following code segments will correctly create an instance of an Item class? public class Item { private String name; private double price; public Item (double a, String b) { name = b;...
-
What is the year in which JPMorgan Chase Bank N.A. was established?
Study smarter with the SolutionInn App