To prepare the cash flow statement, accountants for Tofino Inc. have summarized activity for the year 2014

Question:

To prepare the cash flow statement, accountants for Tofino Inc. have summarized activity for the year 2014 in two accounts as follows:

To prepare the cash flow statement, accountants for Tofino Inc.

Tofino Inc.'s income statement and selected balance sheet data follow:

To prepare the cash flow statement, accountants for Tofino Inc.

TOFINO INC.
Balance Sheet Data
For the Year Ended December 31, 2014
Increase (Decrease)
Current assets
Cash and cash equivalents.............................................$ ?
Accounts receivable................................................33,120
Inventories.........................................................(14,160)
Prepaid expenses......................................................$ 720
Loan receivable.....................................................(39,600)
Long-term investments............................................(35,160)
Plant and equipment, net.............................................8,520
Land...................................................................97,320
Current liabilities
Accounts payable..................................................$(41,160)
Interest payable.........................................................2,280
Salaries payable........................................................8,400
Other accrued liabilities..............................................12,480
Income tax payable............................................. ....(3,240)
Long-term debt.....................................................(96,360)
Common shares....................................................133,200
Retained earnings...................................................93,960
Required
1. Prepare the cash flow statement of Tofino Inc. for the year ended December 31, 2014, using the direct method to report operating activities. Also prepare a summary of noncash investing and financing activities that will be part of a note to the financial statements.
2. Use the data from Tofino Inc.'s 2014, income statement and the selected balance sheet data to prepare a supplementary schedule showing cash flows from operating activities by the indirect method. All activity in the current accounts results from operations.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Accounting

ISBN: 978-0132690089

9th Canadian Edition volume 2

Authors: Charles T. Horngren, Walter T. Harrison Jr., Jo Ann L. Johnston, Carol A. Meissner, Peter R. Norwood

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