Statement of financial position balances as at 31 December 20X8 and 20X9 are provided below for...

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Statement of financial position balances as at 31 December 20X8 and 20X9 are provided below for Laurel Inc. As at 31 December Assets Cash Short-term investments Accounts receivable. Inventories Long-term investments Equipment Accumulated depreciation Patent, net Total assets Liabilities and Shareholders' Equity Accounts payable Short-term bank debt. Common shares Retained earnings Total liabilities and shareholders' equity 20X9 258,500 $ 333,500 $ 547,000 723,500 208,500 1,717,000 (467,000) 93,500 20X8 103,000 533,500 643,500 317,000 1,017,000 (458,500) 117,000 $ 3,414,500 $ 2,272,500 823,500 $ 718,500 357,000 1,197,000 1,037,000 $ 3,414,500 $ 2,272,500 977,000 577,000 Laurel Inc. additional information: • Net earnings for 20x9 were $720,500. Equipment with an original cost of $417,000 and a NBV of $158,500 was sold for $158,500 during the year. Long-term investments were sold for $143,500 during the year. Short-term investments acquired are treasury bills with an original term of three months. Required: Prepare an SCF for 20X9 using the indirect method. Note any assumptions made during your SCF preparation. (Deductible amounts and Cash outflows should be indicated with minus sign.) Statement of financial position balances as at 31 December 20X8 and 20X9 are provided below for Laurel Inc. As at 31 December Assets Cash Short-term investments Accounts receivable. Inventories Long-term investments Equipment Accumulated depreciation Patent, net Total assets Liabilities and Shareholders' Equity Accounts payable Short-term bank debt. Common shares Retained earnings Total liabilities and shareholders' equity 20X9 258,500 $ 333,500 $ 547,000 723,500 208,500 1,717,000 (467,000) 93,500 20X8 103,000 533,500 643,500 317,000 1,017,000 (458,500) 117,000 $ 3,414,500 $ 2,272,500 823,500 $ 718,500 357,000 1,197,000 1,037,000 $ 3,414,500 $ 2,272,500 977,000 577,000 Laurel Inc. additional information: • Net earnings for 20x9 were $720,500. Equipment with an original cost of $417,000 and a NBV of $158,500 was sold for $158,500 during the year. Long-term investments were sold for $143,500 during the year. Short-term investments acquired are treasury bills with an original term of three months. Required: Prepare an SCF for 20X9 using the indirect method. Note any assumptions made during your SCF preparation. (Deductible amounts and Cash outflows should be indicated with minus sign.)

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To prepare the Statement of Cash Flows SCF for Laurel Inc for the year 20X9 using the indirect method we need to analyze the given information and mak... View the full answer