Bird Corp., a private company reporting under ASPE, reported the following in its financial statements:

Additional information:

1. Purchased land for $50,000 and building for $130,000 by making a $25,000 down payment and financing the remainder with a note payable.

2. A building was sold during the year.

3. Cash was used to purchase equipment.

4. Equipment with an original cost of $28,000 was sold during the year.

5. Mortgage payable and notes payable payments included interest and principal amounts.

6. The company paid $157,000 of notes payable that matured during the year.

7. The company reacquired 2,000 common shares in 2021, with an average cost of $30,800.

8. Preferred shares were sold for cash.

Instructions

a. Determine the amount of any cash inflows or outflows related to investing activities in 2021. Use T accounts to calculate the cash flows.

b. What was the amount of profit reported by Bird Corp. in 2021?

c. Determine the amount of any cash inflows or outflows related to financing activities in 2021. Use T accounts to calculate the cash flows.

d. Identify and determine the amount of any noncash financing activities in 2021.

e. Calculate the cash from net cash provided (used) by operating activities. Using the cash balances provided, calculate increase or decrease in cash first.

Taking It Further

Is it favourable for a company to have a net cash infl ow from investing activities?

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2021 2020 $ 21,000 $ 5,000 Cash Accumulated depreciation–building Accumulated depreciation-equipment Depreciation expense-building Depreciation expense-equipment Building Equipment 578,750 600,000 218,000 192,000 31,250 30,000 45,000 48,000 1,310,000 1,250,000 492,000 480,000 Land 250,000 200,000 Notes payable Mortgage payable Preferred shares: 7,000 shares in 2021; 5,000 in 2020 Common shares: 8,000 shares in 2021; 10,000 in 2020 Contributed surplus–reacquisition of common shares Cash dividends-preferred Retained earnings 216,000 214,000 335,000 350,000 175,000 125,000 123,200 154,000 1,500 6,250 6,250 300,000 240,000 Interest expense Loss on sale of equipment Gain on sale of building 23,000 28,000 5,000 18,000