The comparative unclassified statement of financial position for Blossom Ltd. follows: Assets Cash Accounts receivable BLOSSOMLTD....
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The comparative unclassified statement of financial position for Blossom Ltd. follows: Assets Cash Accounts receivable BLOSSOMLTD. Statement of Financial Position December 31 Inventory Estimated inventory returns Long-term investments Equipment Accumulated depreciation Total assets Liabilities and Shareholders' Equity Accounts payable Refund liability Bank loan payable (noncurrent) Common shares 2021 $57,000 82,000 170,000 5,000 77,000 250,000 (74,000 ) $567,000 $24,000 7,000 146,000 195.000 2020 $20,000 77,500 182,000 3,000 150,000 162,000 (38,000 ) $556,500 $49,000 5,000 194,500 171.000 Bank loan payable (noncurrent) Common shares Retained earnings Total liabilities and shareholders' equity Additional information pertaining to 2021: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 146,000 195,000 195,000 $567,000 194,500 171,000 137,000 $556,500 Net income was $104,800. Sales were $980,000. Cost of goods sold was $750,000. Operating expenses were $49,000, exclusive of depreciation expense. Depreciation expense was $36,000. Interest expense was $18,000. Income tax expense was $28,000. Long-term investments were sold at a gain of $5,800. No equipment was sold during the year. $48,500 of the bank loan was repaid during the year. Common shares were issued for $24,000. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -45,000, or i parenthesis e.g. (45,000).) Cash, January 1 Increase in refund liability BLOSSOM LTD. Statement of Cash Flows-Indirect Method Year Ended December 31, 2021 Adjustments to reconcile net income to < > LA LA The comparative unclassified statement of financial position for Blossom Ltd. follows: Assets Cash Accounts receivable BLOSSOMLTD. Statement of Financial Position December 31 Inventory Estimated inventory returns Long-term investments Equipment Accumulated depreciation Total assets Liabilities and Shareholders' Equity Accounts payable Refund liability Bank loan payable (noncurrent) Common shares 2021 $57,000 82,000 170,000 5,000 77,000 250,000 (74,000 ) $567,000 $24,000 7,000 146,000 195.000 2020 $20,000 77,500 182,000 3,000 150,000 162,000 (38,000 ) $556,500 $49,000 5,000 194,500 171.000 Bank loan payable (noncurrent) Common shares Retained earnings Total liabilities and shareholders' equity Additional information pertaining to 2021: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 146,000 195,000 195,000 $567,000 194,500 171,000 137,000 $556,500 Net income was $104,800. Sales were $980,000. Cost of goods sold was $750,000. Operating expenses were $49,000, exclusive of depreciation expense. Depreciation expense was $36,000. Interest expense was $18,000. Income tax expense was $28,000. Long-term investments were sold at a gain of $5,800. No equipment was sold during the year. $48,500 of the bank loan was repaid during the year. Common shares were issued for $24,000. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -45,000, or i parenthesis e.g. (45,000).) Cash, January 1 Increase in refund liability BLOSSOM LTD. Statement of Cash Flows-Indirect Method Year Ended December 31, 2021 Adjustments to reconcile net income to < > LA LA
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Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1119368458
7th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
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