Savary Limited is a private company reporting under ASPE. Its comparative balance sheet at December 31 is as follows:

Additional information:

1. Profit for 2021 was $200,000.

2. Equipment was purchased during the year. No equipment was sold.

3. Cash dividends were paid to the common shareholders during the year.

Instructions

Prepare the cash flow statement using the indirect method.

Transcribed Image Text:

SAVARY LIMITED Balance Sheet December 31 Assets 2021 2020 $ 114,000 $ 85,000 Cash Accounts receivable 750,000 600,000 Inventory Prepaid insurance Equipment and vehicles Accumulated depreciation 500,000 330,000 18,000 25,000 1,250,000 1,000,000 (350,000) (280,000) $2,282,000 Total assets $1,760,000 Liabilities and Shareholders' Equity $ 226,000 $ 200,000 Accounts payable Salarles payable Interest payable Notes payable 30,000 40,000 26,000 20,000 500,000 350,000 Common shares 600,000 400,000 Retained earnings 900,000 750,000 Total liabilities and shareholders' equity $2,282,000 $1,760,000