1.

Grouper Corp. has decided to expand its operations. The bookkeeper recently completed the following statement of financial position in order to obtain additional funds for expansion:

GROUPER CORP. Statement of Financial Position For the Year Ended December 31, 2020

Current assets:

Cash (net of bank overdraft of $36,000): $300,000

Accounts receivable (net): 515,000

Inventory at the lower of cost and net realizable value: 411,000

FV-NI investments (at costfair value $230,000): 270,000

Property, plant, and equipment:

Buildings (net): 610,000

Equipment (net): 180,000

Land held for future use: 325,000

Intangible assets:

Goodwill: 96,000

Investment in bonds to collect cash flows, at amortized cost: 109,000

Prepaid expenses: 26,000

Current liabilities:

Accounts payable: 355,000

Notes payable (due next year): 155,000

Pension obligation: 98,000

Rent payable: 59,000

Long-term liabilities:

Bonds payable: 689,000

Shareholders' equity:

Common shares, unlimited authorized, 420,000 issued: 420,000

Contributed surplus: 380,000

Retained earnings ?

REQUIRE:

Prepare a revised statement of financial position using the available information. Assume that the bank overdraft relates to a bank account held at a different bank from the account with the cash balance. Assume that the accumulated depreciation balance for the buildings is $190,000 and that the accumulated depreciation balance for the equipment is $185,000. The allowance for doubtful accounts has a balance of $24,000. The pension obligation is considered a long-term liability. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings and Equipment.)

2.

The comparative statement of financial position of Flint Corporation as at December 31, 2020, follows:

FLINT CORPORATION Statement of Financial Position December 31

December 312020

Cash$53,000

Accounts receivable 89,800

Equipment 26,700

Less: Accumulated depreciation(10,400)

Total$159,100

Liabilities and Shareholders' Equity:

Accounts payable$19,900

Common shares 100,000

Retained earnings 39,200

Total$159,100

December 31, 2019

Cash: $11,400

Accounts receivable: 89,000

Equipment: 22,000

Less: Accumulated depreciation: (10,800)

Total: $111,600

Liabilities and Shareholders' Equity:

Account payable: $14,800

Common shares: 80,600

Retained earnings: 16,200

Total: $111,600

Net income of $36,000 was reported and dividends of $13,000 were declared and paid in 2020. New equipment was purchased, and equipment with a carrying value of $4,400 (cost of $11,800 and accumulated depreciation of $7,400) was sold for $7,600. Prepare a statement of cash flows using the indirect method for cash flows from operating activities. Assume that Flint prepares financial statements in accordance with ASPE. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

(Hint: Statement of cash flows has Adjustments to reconcile net income to net cash provided by operating activities:)