Sunland's Custom Clothing (SCC) sells branded clothing to resorts and corporations. The company's comparative financia statements...

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Sunland's Custom Clothing (SCC) sells branded clothing to resorts and corporations. The company's comparative financia statements are presented below. Current Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Property and equipment Property and equipment Less: Accumulated depreciation Net property and equipment TOTAL ASSETS Current liabilities SUNLAND'S CUSTOM CLOTHING STATEMENT OF FINANCIAL POSITION December 31 Accounts payable Salaries payable Interest payable Total current liabilities Loan payable Total liabilities SUNLAND'S CUSTOM CLOTHING INCOME STATEMENT For the Years Ended December 31 Sales revenue Cost of sales Gross margin Expenses Salary expense Interest expense Shareholders' equity Common shares Retained earnings Total shareholders' equity 152,400 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $312,100 2020 2019 921,000 755,000 663,000 537,000 258,000 218,000 95,000 5,100 2020 150,000 29,000 71,000 9,600 259,600 85,000 2,100 106,000 53,500 52,500 $312,100 24,300 8,600 4,800 37,700 122,000 159,700 20,800 131,600 2019 79,200 24,300 44,900 2,900 151,300 146,000 54,500 91,500 $242,800 32,800 5,100 7,800 45,700 113,000 158,700 1,600 82,500 84,100 $242,800 Other expenses Depreciation expense Total expenses Operating income Loss on disposal of equipment Income tax expense Net income ● ● • Following is additional information concerning SCC's transactions during the year ended December 31, 2020: Equipment costing $35,000 was purchased by paying $25,000 cash and issuing 400 common shares. Equipment costing $75,000 that was purchased at the beginning of 2019 was sold at the end of 2020 for $38,000. Straight- line depreciation had been used with an expected asset life of 5 years and a residual value of $0. The "other expenses" relate to prepaid items. In order to supplement its cash, SCC increased its bank loan by $9,000. Cash dividends of $34,425 were paid at the end of the fiscal year. Cost of sales includes $172,000 of direct labour costs. ● ● Cash Flows from Operating Activities Cash Received from Customers Cash Paid to Suppliers Cash Paid to Employees 8,200 29,000 137,300 120,700 Prepare a statement of cash flows for SCC for the year ended December 31, 2020, using the direct method. CCC follows ASPE. Include any note disclosure on non-cash financing and investing transactions. (Show amounts that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis e.g. (15,000).) Cash Paid for Interest O Cash Paid for Taxes 7,000 30,175 83,525 Cash Flows from Investing Activities Net Cash Provided by Operating Activities 5,900 32,200 125,200 92,800 1,000 17,400 74,400 Cash Paid for Purchase of Equipment Sunland's Custom Clothing Statement of Cash Flows For the Year Ended December 31, 2020 916300 -8100 -30175 -25000 Cash Flows from Operating Activities Cash Received from Customers Cash Paid to Suppliers Cash Paid to Employees Cash Paid for Interest Cash Paid for Taxes Net Cash Provided by Operating Activities Cash Flows from Investing Activities Cash Paid for Purchase of Equipment Proceeds from Sale of Equipment Net Cash Provided by Investing Activities Cash Flows from Financing Activities Increase in Bank Loan Payable Issuance of Common Shares Payment of Dividends Net Cash Used by Financing Activities Increase in Cash Opening Cash Balance Closing Cash Balance Non-cash investing and financing activities Issuance of Common Shares in Partial Payment for Equipment 916300 -8100 -30175 -25000 38000 9000 9200 -34425 $ $ 13000 -16225 79200 Sunland's Custom Clothing (SCC) sells branded clothing to resorts and corporations. The company's comparative financia statements are presented below. Current Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Property and equipment Property and equipment Less: Accumulated depreciation Net property and equipment TOTAL ASSETS Current liabilities SUNLAND'S CUSTOM CLOTHING STATEMENT OF FINANCIAL POSITION December 31 Accounts payable Salaries payable Interest payable Total current liabilities Loan payable Total liabilities SUNLAND'S CUSTOM CLOTHING INCOME STATEMENT For the Years Ended December 31 Sales revenue Cost of sales Gross margin Expenses Salary expense Interest expense Shareholders' equity Common shares Retained earnings Total shareholders' equity 152,400 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $312,100 2020 2019 921,000 755,000 663,000 537,000 258,000 218,000 95,000 5,100 2020 150,000 29,000 71,000 9,600 259,600 85,000 2,100 106,000 53,500 52,500 $312,100 24,300 8,600 4,800 37,700 122,000 159,700 20,800 131,600 2019 79,200 24,300 44,900 2,900 151,300 146,000 54,500 91,500 $242,800 32,800 5,100 7,800 45,700 113,000 158,700 1,600 82,500 84,100 $242,800 Other expenses Depreciation expense Total expenses Operating income Loss on disposal of equipment Income tax expense Net income ● ● • Following is additional information concerning SCC's transactions during the year ended December 31, 2020: Equipment costing $35,000 was purchased by paying $25,000 cash and issuing 400 common shares. Equipment costing $75,000 that was purchased at the beginning of 2019 was sold at the end of 2020 for $38,000. Straight- line depreciation had been used with an expected asset life of 5 years and a residual value of $0. The "other expenses" relate to prepaid items. In order to supplement its cash, SCC increased its bank loan by $9,000. Cash dividends of $34,425 were paid at the end of the fiscal year. Cost of sales includes $172,000 of direct labour costs. ● ● Cash Flows from Operating Activities Cash Received from Customers Cash Paid to Suppliers Cash Paid to Employees 8,200 29,000 137,300 120,700 Prepare a statement of cash flows for SCC for the year ended December 31, 2020, using the direct method. CCC follows ASPE. Include any note disclosure on non-cash financing and investing transactions. (Show amounts that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis e.g. (15,000).) Cash Paid for Interest O Cash Paid for Taxes 7,000 30,175 83,525 Cash Flows from Investing Activities Net Cash Provided by Operating Activities 5,900 32,200 125,200 92,800 1,000 17,400 74,400 Cash Paid for Purchase of Equipment Sunland's Custom Clothing Statement of Cash Flows For the Year Ended December 31, 2020 916300 -8100 -30175 -25000 Cash Flows from Operating Activities Cash Received from Customers Cash Paid to Suppliers Cash Paid to Employees Cash Paid for Interest Cash Paid for Taxes Net Cash Provided by Operating Activities Cash Flows from Investing Activities Cash Paid for Purchase of Equipment Proceeds from Sale of Equipment Net Cash Provided by Investing Activities Cash Flows from Financing Activities Increase in Bank Loan Payable Issuance of Common Shares Payment of Dividends Net Cash Used by Financing Activities Increase in Cash Opening Cash Balance Closing Cash Balance Non-cash investing and financing activities Issuance of Common Shares in Partial Payment for Equipment 916300 -8100 -30175 -25000 38000 9000 9200 -34425 $ $ 13000 -16225 79200

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Sunlands Custom Clothing Statement of Cash Flows For the year ended December 31 2020 Cash flows from ... View the full answer