Marigold Inc., a greeting card company that follows ASPE, had the following statements prepared as at...

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Marigold Inc., a greeting card company that follows ASPE, had the following statements prepared as at December 31, 2020: MARIGOLD INC. Comparative Statement of Financial Position December 31 2019 Cash $50,815 Accounts receivable 58,000 Inventory 40,010 Prepaid rent 5,270 Equipment 159,820 Accumulated depreciation-equipment (35,270 ) Goodwill 22,000 Total assets $300,645 Accounts payable $46,220 Income tax payable 4,010 Salaries and wages payable 8,160 Short-term loans payable 8,000 Long-term loans payable 62,000 Common shares 130,000 Retained earnings 42,255 Total liabilities and shareholders' equity $300,645 2020 $25,160 51,200 60,140 4,140 130,110 (25,140 ) 62,000 $307,610 $40,110 6,140 4,160 10,200 81,000 130,000 36,000 307,610 MARIGOLD INC. Income Statement Year Ending December 31, 2020 Sales revenue $347,435 Cost of goods sold 165,000 Gross margin 182,435 Operating expenses 120,000 Operating income 62,435 Interest expense Impairment loss-goodwill Gain on disposal of equipment 48,600 Income before income tax 13,835 Income tax expense 4,180 Net income $9,655 Additional information: Dividends on common shares in the amount of $3,400 were declared and paid during 2020. Dividends paid are treated as financing act Depreciation expense is included in operating expenses, as is salaries and wages expense of $71,000. Equipment with a cost of $42,000 that was 70% depreciated was sold during 2020. $11,500 40,000 (2,900 ) Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Marigold Inc. Statement of Cash Flows (Indirect Method) $ Adjustments to reconcile net income/loss to net cash provided by operating activities: $ Marigold Inc., a greeting card company that follows ASPE, had the following statements prepared as at December 31, 2020: MARIGOLD INC. Comparative Statement of Financial Position December 31 2019 Cash $50,815 Accounts receivable 58,000 Inventory 40,010 Prepaid rent 5,270 Equipment 159,820 Accumulated depreciation-equipment (35,270 ) Goodwill 22,000 Total assets $300,645 Accounts payable $46,220 Income tax payable 4,010 Salaries and wages payable 8,160 Short-term loans payable 8,000 Long-term loans payable 62,000 Common shares 130,000 Retained earnings 42,255 Total liabilities and shareholders' equity $300,645 2020 $25,160 51,200 60,140 4,140 130,110 (25,140 ) 62,000 $307,610 $40,110 6,140 4,160 10,200 81,000 130,000 36,000 307,610 MARIGOLD INC. Income Statement Year Ending December 31, 2020 Sales revenue $347,435 Cost of goods sold 165,000 Gross margin 182,435 Operating expenses 120,000 Operating income 62,435 Interest expense Impairment loss-goodwill Gain on disposal of equipment 48,600 Income before income tax 13,835 Income tax expense 4,180 Net income $9,655 Additional information: Dividends on common shares in the amount of $3,400 were declared and paid during 2020. Dividends paid are treated as financing act Depreciation expense is included in operating expenses, as is salaries and wages expense of $71,000. Equipment with a cost of $42,000 that was 70% depreciated was sold during 2020. $11,500 40,000 (2,900 ) Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Marigold Inc. Statement of Cash Flows (Indirect Method) $ Adjustments to reconcile net income/loss to net cash provided by operating activities: $

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MARIGOLD INC Statement of Cash flows For the year ended December 31 2020 Cash flows from operating a... View the full answer