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View Policies Current Attempt in Progress Metlock's Custom Clothing (MCC) sells branded clothing to resorts and corporations. The company's comparative financial statements are presented below. METLOCK'S CUSTOM CLOTHING STATEMENT OF FINANCIAL POSITION December 31 Current Assets 2020 Cash 150,000 Accounts receivable 32,000 Inventory 67,000 Prepaid expenses 10.200 Total current assets 259.200 Property and equipment Property and equipment 99,000 Less: Accumulated depreciation 52,600 Net property and equipment 46,400 2019 77,400 24.200 44,200 3,100 148.900 144,000 55,200 88,800 TOTAL ACCETC Search for anything OBI E 11/2 Question 1 of 2 2020 150,000 32,000 67.000 10,200 259,200 2019 77,400 24,200 44,200 3,100 148,900 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 Accounts payable Salaries payable Interest payable Total current liabilities Loan payable Total liabilities 99,000 52,600 46,400 $305,600 144,000 55,200 88.800 $237.700 23,800 9,200 4.700 37.700 118,000 155.700 30,600 5,300 8,400 44.300 109,000 153,300 Search for anything C i E Assign Question 1 of 2 $305,600 $237.700 TOTAL ASSETS Current liabilities Accounts payable Salaries payable Interest payable Total current liabilities Loan payable Total liabilities Shareholders' equity Common shares Retained earnings Total shareholders' equity TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 23,800 9,200 4.700 37.700 118.000 155,700 30,600 5,300 8,400 44,300 109,000 153,300 20,400 129,500 149.900 $305,600 1,500 82.900 84,400 $237.700 METLOCK'S CUSTOM CLOTHING INCOME STATEMENT For the Years Ended December 31 2020 2019 2019 753,000 532,000 221,000 METLOCK'S CUSTOM CLOTHING INCOME STATEMENT For the Years Ended December 31 2020 Sales revenue 878,000 Cost of sales 631,000 Gross margin 247,000 Expenses Salary expense 99,000 Interest expense 5.200 Other expenses 8,000 Depreciation expense 29,000 Total expenses 141,200 Operating income 105,800 Loss on disposal of equipment 5,400 Income tax expense 26,450 Net income 73,950 88,000 2.000 5,900 32,200 128,100 92,900 1,100 18.900 72.900 Question 1 of 2 -/13 . Following is additional information concerning MCC's transactions during the year ended December 31, 2020: Equipment costing $34,000 was purchased by paying $23,000 cash and issuing 400 common shares. Equipment costing $79.000 that was purchased at the beginning of 2019 was sold at the end of 2020 for $42,000. 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. MCC increased its bank loan by $9,000. Cash dividends of $27,350 were paid at the end of the fiscal year Cost of sales includes $168,000 of direct labour costs . . . Prepare a statement of cash flows for MCC 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 - sion es. -15,000 or in parenthesis es. (1.5,000).) Metlock's Custom Clothing Statement of Cash Flows Metlock's Custom Clothing Statement of Cash Flows D i 351 Question 1 of 2 > -/13 TIT > Non-cash investing and financing activities