The following is the Statement of Financial Position and the Statement of Income for Kaminsky Ltd....

 

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The following is the Statement of Financial Position and the Statement of Income for Kaminsky Ltd. Kaminsky Ltd Statement of Financial Position As at December 31, 2020 2020 2019 Assets 24,700 $ 188,500 Cash 41,750 Accounts receivable 183,400 Allowance for doubtful accounts (15,000) 260,000 60,000 184,000 (16,500) 200,000 80,000 FVTOCI investments FVTPL investments Inventory Prepaid insurance 161,000 18,000 $ 720,200 $ 16,000 665,650 Land 400,000 150,000 1,480,000 Buildings and equipment Accumulated depreciation 1,650,000 -650,000 S 1,400,000 $ 1,050,000 $ 2,120,200 $ 1,715,650 -580,000 Liabilities and Shareholders' Equity Short-term bank loan 22,000 5000 119,300 20,400 16,600 Accounts payable 103,600 16,750 19,900 Unearned revenues Tax payable Dividends payable 25,000 $ 187,250 $ $ 800,000 $ 1,124,950 30,000 186,300 Common shares 800,000 Retained earnings AOCI- FVTOCI investments 747,350 -18,000 8,000 1,932,950 1,529,350 $ 2,120,200 $ 1,715,650 Kaminsky Ltd Statement of Income for the Year Ended December 31, 2020 $ 3,350,000 1,340,000 2,010,000 Revenue Cost of Goods Sold Gross margin Operating expenses 717,000 4,100 44,500 Bad debt expense Interest expense Тах еxpense 311,100 Gain on sale of equipment 17,000 4,900 FV adjustment on FVTPL investments Gain on sale of FVTPL investments 7,500 Net income 962,700 OC- FVTOCI investments Comprehensive income 15,400 978,100 Additional information 1. Depreciation expense of $182,000 is included in operating expenses. 2. The company acquired equipment during the year. 3. The company sold equipment for proceeds of $65,000. The asset was 70% depreciated at the time of sale. 4. The short-term bank loans are considered cash and cash equivalents. 5. Fair value though profit and loss investments with a carrying value of $70,000 were sold in 2020. FVTOCI investments with an original cost of $48,600 were sold in 2020 for proceeds of $38,000. The investments had a carrying value of $42,000 at the beginning of 2020. 6. Required - a. Calculate the cash flow from operations section of the Statement of Cash Flow using the indirect method. (6 marks) b. Calculate cash flow from operations section of the Statement of Cash Flow using the direct method. (8 marks) c. Calculate cash flow from investing activities. (14 marks) The following is the Statement of Financial Position and the Statement of Income for Kaminsky Ltd. Kaminsky Ltd Statement of Financial Position As at December 31, 2020 2020 2019 Assets 24,700 $ 188,500 Cash 41,750 Accounts receivable 183,400 Allowance for doubtful accounts (15,000) 260,000 60,000 184,000 (16,500) 200,000 80,000 FVTOCI investments FVTPL investments Inventory Prepaid insurance 161,000 18,000 $ 720,200 $ 16,000 665,650 Land 400,000 150,000 1,480,000 Buildings and equipment Accumulated depreciation 1,650,000 -650,000 S 1,400,000 $ 1,050,000 $ 2,120,200 $ 1,715,650 -580,000 Liabilities and Shareholders' Equity Short-term bank loan 22,000 5000 119,300 20,400 16,600 Accounts payable 103,600 16,750 19,900 Unearned revenues Tax payable Dividends payable 25,000 $ 187,250 $ $ 800,000 $ 1,124,950 30,000 186,300 Common shares 800,000 Retained earnings AOCI- FVTOCI investments 747,350 -18,000 8,000 1,932,950 1,529,350 $ 2,120,200 $ 1,715,650 Kaminsky Ltd Statement of Income for the Year Ended December 31, 2020 $ 3,350,000 1,340,000 2,010,000 Revenue Cost of Goods Sold Gross margin Operating expenses 717,000 4,100 44,500 Bad debt expense Interest expense Тах еxpense 311,100 Gain on sale of equipment 17,000 4,900 FV adjustment on FVTPL investments Gain on sale of FVTPL investments 7,500 Net income 962,700 OC- FVTOCI investments Comprehensive income 15,400 978,100 Additional information 1. Depreciation expense of $182,000 is included in operating expenses. 2. The company acquired equipment during the year. 3. The company sold equipment for proceeds of $65,000. The asset was 70% depreciated at the time of sale. 4. The short-term bank loans are considered cash and cash equivalents. 5. Fair value though profit and loss investments with a carrying value of $70,000 were sold in 2020. FVTOCI investments with an original cost of $48,600 were sold in 2020 for proceeds of $38,000. The investments had a carrying value of $42,000 at the beginning of 2020. 6. Required - a. Calculate the cash flow from operations section of the Statement of Cash Flow using the indirect method. (6 marks) b. Calculate cash flow from operations section of the Statement of Cash Flow using the direct method. (8 marks) c. Calculate cash flow from investing activities. (14 marks)

Answer rating: 100% (QA)

Cash Flow from Operating Activities Net Income 962700 182000 5100 ... View the full answer