Financial information for Fesone Inc.'s balance sheet for fiscal 2020 and 2021 follows: 2021 2020 550,000...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Financial information for Fesone Inc.'s balance sheet for fiscal 2020 and 2021 follows: 2021 2020 550,000 1,300,000 Cash 204,800 Accounts receivable 1,150,000 410,000 400,000 150,000 Inventory 250,000 Investments at FV-NI Investments at amortized cost Property plant and equipment Accumulated depreciation 3,400,000 (1,860,000) 3,400,000 (1,570,000) 3,930,000 Total 3,854,800 Accounts payable 260,000 80,000 Bank loan 2,226,000 187,800 2,850,000 Bonds payable 185,000 Preferred shares 15,000 Common shares 597,000 Retained earnings Total 584,000 3,854,800 450,000 350,000 3,930,000 Additional information: 1. Preferred shares were converted to common shares during the year at their book value. 2. The face value of the bonds is $200,000; they pay a coupon rate of 6% per annum. The effective interest rate of interest is 8% per annum. 3. Net income was $290,000. 4. There was an ordinary stock dividend valued at $12,000 and cash dividends were also paid. 5. Interest expense for the year was $130,000. Income tax expense was $116,000. 6. Fesone arranged for a $200,000 bank loan to finance the purchase of the investment at amortized cost. 7. Fesone has adopted a policy of reporting cash flows arising from the payment of interest and dividends as operating and financing activities, respectively. 8. The investment at FV-NI is held for trading purposes. Required: a. Prepare a statement of cash flows for the year ended December 31, 2021 using the indirect method. b. Discuss how the transaction(s) above that are not reported on the statement of cash flows are reported in the financial statements. Financial information for Fesone Inc.'s balance sheet for fiscal 2020 and 2021 follows: 2021 2020 550,000 1,300,000 Cash 204,800 Accounts receivable 1,150,000 410,000 400,000 150,000 Inventory 250,000 Investments at FV-NI Investments at amortized cost Property plant and equipment Accumulated depreciation 3,400,000 (1,860,000) 3,400,000 (1,570,000) 3,930,000 Total 3,854,800 Accounts payable 260,000 80,000 Bank loan 2,226,000 187,800 2,850,000 Bonds payable 185,000 Preferred shares 15,000 Common shares 597,000 Retained earnings Total 584,000 3,854,800 450,000 350,000 3,930,000 Additional information: 1. Preferred shares were converted to common shares during the year at their book value. 2. The face value of the bonds is $200,000; they pay a coupon rate of 6% per annum. The effective interest rate of interest is 8% per annum. 3. Net income was $290,000. 4. There was an ordinary stock dividend valued at $12,000 and cash dividends were also paid. 5. Interest expense for the year was $130,000. Income tax expense was $116,000. 6. Fesone arranged for a $200,000 bank loan to finance the purchase of the investment at amortized cost. 7. Fesone has adopted a policy of reporting cash flows arising from the payment of interest and dividends as operating and financing activities, respectively. 8. The investment at FV-NI is held for trading purposes. Required: a. Prepare a statement of cash flows for the year ended December 31, 2021 using the indirect method. b. Discuss how the transaction(s) above that are not reported on the statement of cash flows are reported in the financial statements.
Expert Answer:
Answer rating: 100% (QA)
Answer Please like the answer and keep supporting Thank you Statement of Cashflows Cash from Operati... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0176509736
10th Canadian Edition, Volume 1
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,
Posted Date:
Students also viewed these accounting questions
-
The following information relates to Vane City during the year ended December 31, 20X8: 1. On October 31, 20X8, to finance the construction of a city hall annex, Vane issued 8 percent, 10-year...
-
Electrolex, Inc., has four-year bonds outstanding that pay a coupon rate of 8.83 percent semiannually. If these bonds are currently selling at $861.63, the yield to maturity that an investor can...
-
A bond has a coupon rate of 6 percent and matures in ten years. The next semiannual interest payment will be paid one month from now. What do you know with certainty concerning this bond?
-
The following summarized statement of profit or loss has been extracted from the financial statements of Gwembe Mining Corporation, a Zambian resident company which engaged in open cast mining...
-
Post the journal entries prepared in the preceding exercise to their appropriate T-accounts and prepare a trial balance at January 31.
-
Three points are identified on the graph in Figure 4P-1. a. At point A, demand is ____. b. At point B, demand is ____. c. At point C, demand is ____.
-
Explain the difference between trigger and precondition.
-
Adler AG, which began operations at the beginning of 2017, produces various products on a contract basis. Each contract generates income of 80,000. Some of Adler's contracts provide for the customer...
-
Image transcription text Assume a pumped hydro energy storage arrangement in which water is pumped up from a low-level water reservoir to a higher-level reservoir to store energy. The water then...
-
Arcadia, Inc., acquired 100 percent of the voting shares of Bruno Company on January 1, 2023. In exchange, Arcadia paid $198,000 in cash and issued 100,000 shares of its own $1 par value common...
-
A rock falls from a tower that is 117.6m high. As it is falling, its height is given by the formula h=117.6-4.9t^(2), with t in seconds. How many seconds will it take for the rock to hit the ground...
-
Write context switch code for your favorite CPU.
-
Write a class based on class UnsortedType as a bounded linked implementation. Provide a parameterized constructor that takes the maximum number of items as a parameter. If function PutItem is called...
-
A thin, long, straight wire is surrounded by plastic insulation of radius \(R\) and dielectric constant \(\kappa\) (Figure 26.32). The wire carries a uniform distribution of charge with a positive...
-
Use the method described by Welham and Thompson (1997) to compute the REML likelihood-ratio statistic for comparing the two linear models \[ \mathcal{X}_{0}=\text { species }+ \text { bark }+ \text {...
-
A steam engine of \(100 \mathrm{~kW}\) runs at \(100 \mathrm{rpm}\). The speed of the engine is to be maintained within \(1 \%\) variation in mean speed. The flywheel has a mass of \(2000...
-
Suppose that average household income greatly increases. What effect will this have on the market for low quality used automobiles (inferior goods)? a) a decrease in supply b) an increase in supply...
-
Perform the operation by first converting the numerator and denominator to scientific notation. Write the answer in scientific notation. 7,200,00/0.000009
-
Antimatter Corporation has the following four items in its ending inventory : (a) Assume that Antimatter is a public company using IFRS. Determine the total value of ending inventory using the lower...
-
The following are transactions recorded by Bounce Corporation during the current year. 1. Ordinary operating maintenance on equipment was recorded as follows: 2. The company received an advance on a...
-
Joseph Kiuvik is reviewing the cash accounting for Connolly Corporation, a local mailing service. Kiuvik's review will focus on the petty cash account and the bank reconciliation for the month ended...
-
Figure P4.2 shows the velocity of a block of wood as a function of time. The block is sliding over a horizontal surface. Describe the physical processes that led to this graph. Data from Figure P4.2...
-
The velocity-versus-time graph in Figure P4.3 shows the motion of two different objects sliding across a horizontal surface. Could the change in the \(x\) component of velocity with time be...
-
Consider the two velocity-versus-time graphs shown in Figure P4.4. Are the motions represented by these curves best described as similar or as different? Is the effect of friction on the motion...
Study smarter with the SolutionInn App