Metlock Inc. reported the following information at the end of its 2019 fiscal year.

Metlock Inc. Statement of Financial Position As at April 30
Assets			2020			2019
	Cash		209,000			155,000
	Accounts receivable		112,000			94,000
	Inventory		108,000			250,000
	Prepaid operating expenses		19,000			13,000
	Long term investments		182,000			84,000
	Equipment		1,237,000			1,170,000
	Less: Accumulated depreciation		(367,000	)		(369,000	)
			1,500,000			1,397,000
Liabilities and Shareholders' Equity
	Accounts payable		52,000			65,000
	Income tax payable		27,000			24,000
	Bonds payable		673,000			765,000
	Common shares		300,000			245,000
	Retained earnings		448,000			298,000
			1,500,000			1,397,000

Metlock Inc. Income Statement For the year ended April 30, 2020
Sales revenue		1,127,000
Cost of goods sold		699,000
Gross profit		428,000
Operating expenses		228,000
Income from operations		200,000
Interest expense		4,700
Gain on disposal of equipment		3,200
Income before income tax		198,500
Income tax expense		18,230
Net income		$180,270

ADDITIONAL INFORMATION:

?		Depreciation expense is included in “operating expenses.” All accounts payable transactions were related to the purchase of inventory.
?		During the year, a piece of equipment that originally cost $47,700 was sold for cash. The equipment was 70% depreciated at the time of the sale.
?		Long-term investments were purchased for cash during the year.

Prepare a statement of cash flows, in good form, for Metlock Inc., using the indirect method and follows ASPE. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Answer rating: 100% (QA)

Metlock Inc Statement of Cash Flows For the Year Ended April 30 2020 Operating Activi... View the full answer