Current Attempt in Progress The income statement and unclassified statement of financial position for Carla Vista, Inc. follow: CARLA VISTA, INC. Statement of Financial Position December 31 Assets 2018 2017 Cash $97,000 $47,300 Held for trading investments 127,000 116,000 Accounts receivable 76,500 41,500 Inventory 123,000 92,800 Prepaid expenses 18,600 27,800 Property, plant, and equipment 299,000 277,500 Accumulated depreciation (47,000 ) (53,000 ) Total assets $694,100 $549,900 Liabilities and Shareholders' Equity Accounts payable $100,000 $74,300 Accrued liabilities 10,400 7,900 Bank loan payable 51,700 195,200 Common shares 290,000 155,000 Retained earnings 242,000 117,500 Total liabilities and shareholders' equity $694,100 $549,900 CARLA VISTA, INC. Income Statement Year Ended December 31, 2018 Sales Cost of goods sold Gross profit Operating expenses Income from operations Other revenues and expenses Unrealized gain on held for trading investments $11,000 Interest expense Income before income tax Income tax expense Net income $586,050 188,100 397,950 116,500 281,450 (4,790 ) 6,210 287,660 42,000 $245,660 Additional information: 1. Prepaid expenses and accrued liabilities relate to operating expenses. 2. An unrealized gain on held for trading investments of $11,000 was recorded. 3. New equipment costing $86,000 was purchased for $22,300 cash and a $63,700 long-term bank loan payable. 4. Old equipment having an original cost of $64,500 was sold for $1,500. 5. Accounts payable relate to merchandise creditors. 6. Some of the bank loan was repaid during the year. 7. A dividend was paid during the year. 8. Operating expenses include $46,400 of depreciation expense and a $10,600 loss on disposal of equipment. (a) Prepare the statement of cash flows, using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Cash, January 1 Cash, December 31 CARLA VISTA, INC. Statement of Cash Flows-Direct Method Cash flows from financing activities Cash flows from investing activities Cash flows from operating activities Net cash provided by financing activities Net cash provided by investing activities Net cash provided by operating activities Net cash used by financing activities Net cash used by investing activities $ Net cash used by operating activities Net decrease in cash Net increase in cash $ Gain on disposal of equipment For Interest Increase in inventories Decrease in accounts payable Increase in accounts receivable Payment of cash dividends Increase in accounts payable For Operating Expenses Decrease in accounts receivable Increase in accrued liabilities Loss on disposal of equipment Sale of common shares Decrease in accrued liabilities Purchase of land Decrease in prepaid expenses Profit Purchase of equipment Increase in prepaid expenses Repayment of bank loan payable $ $ Note X to the Statement of Cash Flows: During the year, the company purchased equipment costing $ paying $22,300 cash and issuing a $63,700 bank loan payable. eTextbook and Media by Cash, January 1 Cash, December 31 Cash flows from financing activities Cash flows from investing activities Cash flows from operating activities Net cash provided by financing activities Net cash provided by investing activities Net cash provided by operating activities Net cash used by financing activities Net cash used by investing activities Net cash used by operating activities Net decrease in cash Net increase in cash $ Note X to the Statement of Cash Flows: During the year, the company purchased equipment costing $ paying $22,300 cash and issuing a $63,700 bank loan payable. eTextbook and Media Save for Later by Attempts: 0 of 2 used. Submit Ancwor