This is an accounting problem I need help with. I have almost completed everything and i need help with the cash flows. Also, i would really appreciate if you can take a look to the whole problem and see if everything is fine.

The first and second picture is all the information we were provided.

I need help completing the Cash Flows

Thank you!!!

The method of solution requires indirect method. In 2023, you were hired as the Chief Financial Officer for MC Travel Inc., a fairly young travel company that is growing quickly. A key accounting staff member has prepared the financial statements, but there are a couple of transactions that have not been recorded yet because she is waiting for your guidance regarding how these transactions should be recorded. In addition, the staff member is not confident in preparing cash flow statements, so you have been asked to prepare this statement for the 2023 year. MC Travel INC. reports under ASPE. The transactions that have not been recorded yet are as follows. On January 1, 2021, the company purchased a small hotel property in Miami for $50 million the balance. The bond principal is payable on January 1 , 2022. When you were hired, and began to review the financial information from previous years, you quickly realized that the land portion of the total purchase price had been capitalized with building, and depreciated. Depreciation has been incorrectly recorded on the building for 20212022 and 2023 , and the land is million in 2021, and the land is currently worth $17 million. The cost of the property is to be amortizedovera20yearperiodusingthestraight-linebasis,andaresidualvalueof$5 million. The company's tax rate is During 2023, the president, who is also the principal shareholder in the business, transferred ownership of a vacant piece of land in the Carribbean to the company. A hotel will be constructed on this property beginning in 2021. The cost when the president purchased this property was $10 million and the fair market value, based on the professional appraisal, at the time it was trasferred to the exchange for this land. This transaction has not yet been booked. Additional information that you have gathered to assist in preparing the cash flow statement is as follows: In 2023, equipment was purchased for $250,000. In addition, some equipment was disposed of during the year. Investment income includes a dividend of $150,000 received on the temporary investment. Interest income o $106,000 was reinvested in temporary investments. \begin{tabular}{ll|l|l|l|l|l|l} Following are the financial statements for MC Travel Inc. For 2023 and 2022 fiscal years. \end{tabular} (Please see financial statements on sheet \#3) Instructions: From the information on the next page, complete the necessary adjusting entries to record the transactions that have not been booked, and prepare the revised balance sheet and income statement for the year, keeping in mind that comparative figures will need to be restated. Once this is complete, prepare a statement of cash flows in good form using the indirect method for the year ended December 31, 2023. Assume all transaction amounts have been reported in CAD. Hints: Please set the formulas for restated-updated columns in accordance with the DR or CR character of the account. Formulize your cells in each spreadsheet, carry the amounts, if necessary from one sheet to another by formulas. Assume that prior year's accounts are still open for reporting purposes. Make sure that on Financial Statement pages (page 4 and 6)adjustment columns' debits are equal to credits. Accumulated Depreciation's ending balance at December 31,2023 is $5,175,000. Building and equipment account's ending balance at December 31,2023 is $40,270,000. Accordingly please calculate the disposed-sold equipment's acumulated depreciation written off and how much cash was obtained from the sale. Complete the entry on page 5. President's transfer of the land to the company must be done from the fair value in the market. 2022 Adjusting entries should be carried forward (redone) to 2023 in order to update the opening balances in 2023. Do not include dividents received on your cash flow because it has already been included in your net income (a glitch in the problem). MC TRAVEL INC. Balance Sheet December 31, Note: The statements before any adjustments. ASSETS-Current assets Cash Temporary investments Accounts receivable Allowance for doubtful accounts Total current assets \begin{tabular}{|r|r|} \hline 2023 & \multicolumn{1}{|c|}{2022} \\ \hline 7,600,000 & \\ \hline 2,006,000 & 5,040,000 \\ \hline 5,000,000 & 1,900,000 \\ \hline200,000 & 3,700,000 \\ \hline 14,406,000 & 100,500 \\ \hline & 10,539,500 \\ \hline \end{tabular} Capital assets Land Building and equipment Accumulated depreciation Total capital assets Total assets \begin{tabular}{|r|r|} \hline 250,000 & 250,000 \\ \hline 55,270,000 & 55,072,000 \\ \hline7,425,000 & 4,950,000 \\ \hline 48,095,000 & 50,372,000 \\ \hline 62,501,000 \\ \hline \hline \end{tabular} LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable Interest payable Income taxes payable Dividents payable Total current liabilities \begin{tabular}{|r|r|} \hline 3,800,800 & 4,100,750 \\ \hline 30,000 & 15,000 \\ \hline 350,000 & 250,000 \\ \hline 0 & 100,000 \\ \hline 4,180,800 & 4,465,750 \\ \hline \end{tabular} Long term liabilities Long term bank loan Bond payable Future income tax liability Total long term liabilities Total liabilities \begin{tabular}{|r|r|} \hline 1,145,000 & 807,000 \\ \hline 40,000,000 & 40,000,000 \\ \hline 175,000 & 150,000 \\ \hline 41,320,000 & 40,957,000 \\ \hline 45,500,800 & 45,422,750 \\ \hline \end{tabular} Shareholders' equity Common shares Retained earnings Total shareholders' equity Total liabilities and shareholders' equity Difference : Assets - (Liabilities + Shareholders' equity) \begin{tabular}{r|r|} \hline 1,000,000 & 1,000,000 \\ \hline 16,000,200 & 14,488,750 \\ \hline 17,000,200 & 15,488,750 \\ \hline 62,501,000 \\ \hline \hline 0 & 00,911,500 \\ \hline \hline \end{tabular} MC TRAVEL INC. Income Statement For The Year Ended December 31, 2023, $ Sales 37,500,000 Expenses: Salaries and wages Purchases from tour operators Depreciation expense Office, general, and selling expenses Bad debt expenses Interest on long-term debt Bond interest expense Total expenses \begin{tabular}{|r|} \hline 5,000,000 \\ \hline 22,500,000 \\ \hline 2,500,000 \\ \hline 3,489,800 \\ \hline 150,000 \\ \hline 30,000 \\ \hline 2,000,000 \\ \hline 35,669,800 \\ \hline \end{tabular} Income before other income and expenses Investment income Gain on sale of equipment Income before income taxes Income tax expense Net income 1,830,200256,00073,0002,159,200647,7501,511,450 MC TRAVEL INC. Balance Sheet December 31, \$ LIABILITIES AND SHAREHOLDERS' EQUITY Shareholders' equity Common shares Retained earnings Total shareholders' equity Total liabilities and shareholders' equity 60,911,500 Difference : Assets - (Liabilities + Shareholders' equity) 62,411,500 Adjustment for prior year end's accumulated depreciation, income tax payable and retained earnings. Carried in 2023 to update 2019 opening balances. Depreciation adjusting entry in 2023. Income tax expense adjustment due to (3) above in 2023. Owner's transfer of land at fair value in 2023. MC TRAVEL INC. Balance Sheet December 31, $ Capital assets Land Building and equipment Accumulated depreciation Total capital assets Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable Interest payable Income taxes payable Dividends payable Total current liabilities \begin{tabular}{|r|r|r|r|} \hline 3,800,800 & 4,100,750 & 299,950 \\ \hline 675,000 & 30,000 & 15,000 & 15,000 \\ \hline 1,025,000 & 700,000 & 325,000 \\ \hline & 0 & 100,000 & 100,000 \\ \hline 4,855,800 & 4,915,750 & 59,950 \\ \hline \end{tabular} Long term liabilities Long term bank loan Bond payable Future income tax liability Total long term liabilities Total liabilities Shareholders' equity Common shares Retained earnings Total shareholders' equity Total liabilities and shareholders' equity Difference : Assets - (Liabilities + Shareholders' equity) Net income Depreciation expense Doubtful receivables written off Bad debt expense Change in accounts receivable Change in temporary investments Change in accounts payable Change in interest payable Change in income tax payable Gain on sale of equipment Change in future income tax liability Cash flow from operating activities New equipment purchased Old equipment sold Cash flow from investing activities Change in dividends payable Change in LT bank loan Cash flow from financing activities Total cash increase/(decrease) Beginning cash balance Cash increase/(decrease) Ending cash balance Ending cash balance - balance sheet Difference The method of solution requires indirect method. In 2023, you were hired as the Chief Financial Officer for MC Travel Inc., a fairly young travel company that is growing quickly. A key accounting staff member has prepared the financial statements, but there are a couple of transactions that have not been recorded yet because she is waiting for your guidance regarding how these transactions should be recorded. In addition, the staff member is not confident in preparing cash flow statements, so you have been asked to prepare this statement for the 2023 year. MC Travel INC. reports under ASPE. The transactions that have not been recorded yet are as follows. On January 1, 2021, the company purchased a small hotel property in Miami for $50 million the balance. The bond principal is payable on January 1 , 2022. When you were hired, and began to review the financial information from previous years, you quickly realized that the land portion of the total purchase price had been capitalized with building, and depreciated. Depreciation has been incorrectly recorded on the building for 20212022 and 2023 , and the land is million in 2021, and the land is currently worth $17 million. The cost of the property is to be amortizedovera20yearperiodusingthestraight-linebasis,andaresidualvalueof$5 million. The company's tax rate is During 2023, the president, who is also the principal shareholder in the business, transferred ownership of a vacant piece of land in the Carribbean to the company. A hotel will be constructed on this property beginning in 2021. The cost when the president purchased this property was $10 million and the fair market value, based on the professional appraisal, at the time it was trasferred to the exchange for this land. This transaction has not yet been booked. Additional information that you have gathered to assist in preparing the cash flow statement is as follows: In 2023, equipment was purchased for $250,000. In addition, some equipment was disposed of during the year. Investment income includes a dividend of $150,000 received on the temporary investment. Interest income o $106,000 was reinvested in temporary investments. \begin{tabular}{ll|l|l|l|l|l|l} Following are the financial statements for MC Travel Inc. For 2023 and 2022 fiscal years. \end{tabular} (Please see financial statements on sheet \#3) Instructions: From the information on the next page, complete the necessary adjusting entries to record the transactions that have not been booked, and prepare the revised balance sheet and income statement for the year, keeping in mind that comparative figures will need to be restated. Once this is complete, prepare a statement of cash flows in good form using the indirect method for the year ended December 31, 2023. Assume all transaction amounts have been reported in CAD. Hints: Please set the formulas for restated-updated columns in accordance with the DR or CR character of the account. Formulize your cells in each spreadsheet, carry the amounts, if necessary from one sheet to another by formulas. Assume that prior year's accounts are still open for reporting purposes. Make sure that on Financial Statement pages (page 4 and 6)adjustment columns' debits are equal to credits. Accumulated Depreciation's ending balance at December 31,2023 is $5,175,000. Building and equipment account's ending balance at December 31,2023 is $40,270,000. Accordingly please calculate the disposed-sold equipment's acumulated depreciation written off and how much cash was obtained from the sale. Complete the entry on page 5. President's transfer of the land to the company must be done from the fair value in the market. 2022 Adjusting entries should be carried forward (redone) to 2023 in order to update the opening balances in 2023. Do not include dividents received on your cash flow because it has already been included in your net income (a glitch in the problem). MC TRAVEL INC. Balance Sheet December 31, Note: The statements before any adjustments. ASSETS-Current assets Cash Temporary investments Accounts receivable Allowance for doubtful accounts Total current assets \begin{tabular}{|r|r|} \hline 2023 & \multicolumn{1}{|c|}{2022} \\ \hline 7,600,000 & \\ \hline 2,006,000 & 5,040,000 \\ \hline 5,000,000 & 1,900,000 \\ \hline200,000 & 3,700,000 \\ \hline 14,406,000 & 100,500 \\ \hline & 10,539,500 \\ \hline \end{tabular} Capital assets Land Building and equipment Accumulated depreciation Total capital assets Total assets \begin{tabular}{|r|r|} \hline 250,000 & 250,000 \\ \hline 55,270,000 & 55,072,000 \\ \hline7,425,000 & 4,950,000 \\ \hline 48,095,000 & 50,372,000 \\ \hline 62,501,000 \\ \hline \hline \end{tabular} LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable Interest payable Income taxes payable Dividents payable Total current liabilities \begin{tabular}{|r|r|} \hline 3,800,800 & 4,100,750 \\ \hline 30,000 & 15,000 \\ \hline 350,000 & 250,000 \\ \hline 0 & 100,000 \\ \hline 4,180,800 & 4,465,750 \\ \hline \end{tabular} Long term liabilities Long term bank loan Bond payable Future income tax liability Total long term liabilities Total liabilities \begin{tabular}{|r|r|} \hline 1,145,000 & 807,000 \\ \hline 40,000,000 & 40,000,000 \\ \hline 175,000 & 150,000 \\ \hline 41,320,000 & 40,957,000 \\ \hline 45,500,800 & 45,422,750 \\ \hline \end{tabular} Shareholders' equity Common shares Retained earnings Total shareholders' equity Total liabilities and shareholders' equity Difference : Assets - (Liabilities + Shareholders' equity) \begin{tabular}{r|r|} \hline 1,000,000 & 1,000,000 \\ \hline 16,000,200 & 14,488,750 \\ \hline 17,000,200 & 15,488,750 \\ \hline 62,501,000 \\ \hline \hline 0 & 00,911,500 \\ \hline \hline \end{tabular} MC TRAVEL INC. Income Statement For The Year Ended December 31, 2023, $ Sales 37,500,000 Expenses: Salaries and wages Purchases from tour operators Depreciation expense Office, general, and selling expenses Bad debt expenses Interest on long-term debt Bond interest expense Total expenses \begin{tabular}{|r|} \hline 5,000,000 \\ \hline 22,500,000 \\ \hline 2,500,000 \\ \hline 3,489,800 \\ \hline 150,000 \\ \hline 30,000 \\ \hline 2,000,000 \\ \hline 35,669,800 \\ \hline \end{tabular} Income before other income and expenses Investment income Gain on sale of equipment Income before income taxes Income tax expense Net income 1,830,200256,00073,0002,159,200647,7501,511,450 MC TRAVEL INC. Balance Sheet December 31, \$ LIABILITIES AND SHAREHOLDERS' EQUITY Shareholders' equity Common shares Retained earnings Total shareholders' equity Total liabilities and shareholders' equity 60,911,500 Difference : Assets - (Liabilities + Shareholders' equity) 62,411,500 Adjustment for prior year end's accumulated depreciation, income tax payable and retained earnings. Carried in 2023 to update 2019 opening balances. Depreciation adjusting entry in 2023. Income tax expense adjustment due to (3) above in 2023. Owner's transfer of land at fair value in 2023. MC TRAVEL INC. Balance Sheet December 31, $ Capital assets Land Building and equipment Accumulated depreciation Total capital assets Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable Interest payable Income taxes payable Dividends payable Total current liabilities \begin{tabular}{|r|r|r|r|} \hline 3,800,800 & 4,100,750 & 299,950 \\ \hline 675,000 & 30,000 & 15,000 & 15,000 \\ \hline 1,025,000 & 700,000 & 325,000 \\ \hline & 0 & 100,000 & 100,000 \\ \hline 4,855,800 & 4,915,750 & 59,950 \\ \hline \end{tabular} Long term liabilities Long term bank loan Bond payable Future income tax liability Total long term liabilities Total liabilities Shareholders' equity Common shares Retained earnings Total shareholders' equity Total liabilities and shareholders' equity Difference : Assets - (Liabilities + Shareholders' equity) Net income Depreciation expense Doubtful receivables written off Bad debt expense Change in accounts receivable Change in temporary investments Change in accounts payable Change in interest payable Change in income tax payable Gain on sale of equipment Change in future income tax liability Cash flow from operating activities New equipment purchased Old equipment sold Cash flow from investing activities Change in dividends payable Change in LT bank loan Cash flow from financing activities Total cash increase/(decrease) Beginning cash balance Cash increase/(decrease) Ending cash balance Ending cash balance - balance sheet Difference