The comparative statement of financial position of Concord Inc. as at June 30, 2020, and a statement of comprehensive income for the 2020 fiscal year follow:

CONCORD INC. Statement of Financial Position June 30, 2020
		June 30
Assets		2020			2019
Cash		$	20,000		$	44,000
Accounts receivable			85,300			74,600
Inventory			103,000			101,000
Prepaid expenses			2,500			5,000
FV-OCI investments			47,900			44,000
Equipment			180,000			159,000
Accumulated depreciation—equipment			(34,900	)		(24,000	)
Total		$	403,800		$	403,600
Liabilities and Shareholders’ Equity
Accounts payable		$	114,000		$	104,000
Income tax payable			1,800			3,500
Dividends payable			5,300			0
Long-term notes payable			82,500			119,000
Common shares			31,700			25,400
Retained earnings			155,100			142,200
Accumulated other comprehensive income			13,400			9,500
Total		$	403,800		$	403,600

CONCORD INC. Statement of Comprehensive Income For the Year Ended June 30, 2020
Net sales		$330,000
Cost of goods sold		169,000
Gross profit		161,000
Operating expenses		124,500
Income from operations		36,500
Interest expense		8,600
Income before income tax		27,900
Income tax		5,400
Net income		22,500
Other comprehensive income
Unrealized gain or loss—OCI		3,900
Comprehensive income		$ 26,400

Additional information:

1.		Concord follows IFRS. Assume that interest is treated as an operating activity for purposes of the statement of cash flows.
2.		Operating expenses include $10,900 in depreciation expense.
3.		There were no disposals of equipment during the year.
4.		Common shares were issued for cash.
5.		During the year, Concord acquired $8,900 of equipment in exchange for long-term notes payable.

Prepare the statement of cash flows for Concord for the year ended June 30, 2020, using the indirect method along with any necessary note disclosure. 

During the year, equipment with a cost of $enter a dollar amount was purchased in exchange for a note payable.?
Cash paid during the year for interest $ .?
Cash paid during the year for taxes $ .?

Prepare the operating activities section of the statement of cash flows for Concord using the direct method.

Answer rating: 100% (QA)

Statement of Cash Flows Indirect Method A Cash Flows from Operating Activity Net Income 22500 Adjustments to reconcile net income to net cash flows fr... View the full answer