Refer to the information presented in PA 33 Data from PA 33 VHL reported income before income taxes of $400,000 Current income tax expense was $40,000 deferred income tax expense was $10,000 Retained earnings increased $340,000 for the year the dividends payable account increased $5,000 Current inc...

Valley Hospitality Ltd Cash Flow Statement partial Year End ...

Refer to the information presented in PA-33. Data from PA-33 VHL reported income before income taxes of

Question:

Refer to the information presented in PA-33.

Data from PA-33

VHL reported income before income taxes of $400,000. Current income tax expense was $40,000; deferred income tax expense was $10,000.
Retained earnings increased $340,000 for the year; the dividends payable account increased $5,000.
Current income taxes payable decreased $4,000; deferred income taxes payable increased $6,000.
Interest expense for the year was $20,000; the interest payable account increased $12,000.
Accounts receivable decreased $18,000 and accounts payable increased $40,000 during the year.
Inventory increased $14,000.
VHL sold equipment with a net book value of $40,000 for $42,000 cash.
VHL sold at fair value through other comprehensive income investments for $12,000. The book value of the investment was $15,000.
Depreciation expense for the year totalled $22,000.
VHL recorded a goodwill impairment loss of $15,000.
Acquired $200,000 in equipment by way of a $20,000 cash down payment and a $180,000 finance lease.

Required:
Prepare the cash flows from operating activities section of the cash flow statement using the indirect method assuming that Valley Hospitality Ltd. is a private enterprise that elects to report its financial results in accordance with ASPE.

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