The following information is for Harley Holdings Ltd. for the year ended January 31, 2020. Additional information:
Question:
The following information is for Harley Holdings Ltd. for the year ended January 31, 2020.
Additional information:
1. Equipment costing $35,000 was sold for $14,000.
2. Land was sold at cost and none was purchased during the year.
Required
Using the above information, prepare the statement of cash flows for Harley Holdings Ltd. for the year ended January 31, 2020, using either method.
Transcribed Image Text:
HARLEY HOLDINGS LTD. Statement of Financial Position As at January 31 2020 2019 Assets Current assets: Cash Accounts receivable $ 36,500 55,000 101,700 193,200 $ 50,000 86,800 95,600 232,400 Inventory Total current assets HARLEY HOLDINGS LTD. Statement of Financial Position As at January 31 Equipment 175,000 145,000 Accumulated depreciation, equipment (43,500) (39,000) Land 120,000 170,000 $483,900 $469,200 Liabilities and shareholders' equity Current liabilities: Accounts payable $ 45,300 $ 62,200 Dividends payable 13,000 5,000 Total current liabilities 58,300 67,200 Bank loan payable 100,000 140,000 Common shares 150,000 130,000 Retained earnings 175,600 132,000 $483,900 $469,200 HARLEY HOLDINGS LTD. Statement of Income For the year ended January 31, 2020 Sales revenue $435,000 Cost of goods sold 295,000 Gross profit 140,000 Expenses Wages expense $15,200 Depreciation expense 26,500 Rent expense 15,100 Income tax ex pense 14,700 71,500 Operation income 68,500 Gain on sale of equipment 1,000 Net income $ 69,500
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a HARLEY HOLDINGS LTD Statement of Cash Flows Indirect Method For the Year Ended January 31 2020 Cash Flows from Operating Activities Net Income 69500 ...View the full answer
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Related Book For
Understanding Financial Accounting
ISBN: 9781119406921
2nd Canadian Edition
Authors: Christopher D. Burnley
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