Whiskey Industries Ltd a Nanaimo British Columbia based company has a
Whiskey Industries Ltd., a Nanaimo, British Columbia–based company, has a December 31 year end. The company’s comparative statement of financial position and its statement of income for the most recent fiscal year are presented here along with some additional information:
1. During the year, Whiskey Industries sold, for $500 cash, equipment that had an original cost of $1,000 and a net carrying amount of $200.
2. Whiskey Industries borrowed an additional $8,000 by issuing notes payable in 2016.
3. During the year, the company purchased a piece of land for a future manufacturing site for $200,000. The land was purchased with no money down and the company entered into a mortgage payable for the full amount.
a. Using the information above, prepare the statement of cash flows for Whiskey Industries Ltd. for the year ended December 31, 2016, using the indirect method.
b. Determine the cash flows from operating activities using the direct method
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