The financial statements of Wetaskiwin Ltd., a private company reporting under ASPE, follow: Additional information: 1. Short-term

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The financial statements of Wetaskiwin Ltd., a private company reporting under ASPE, follow:
The financial statements of Wetaskiwin Ltd., a private company reporting
The financial statements of Wetaskiwin Ltd., a private company reporting

Additional information:
1. Short-term notes receivable are from loans to other companies. During the year, the company collected the outstanding balance at December 31, 2016, and made new loans in the amount of $14,000.
2. Equipment was sold during the year. This equipment cost $15,000 originally and had a carrying amount of $10,000 at the time of sale.
3. Equipment costing $10,000 was purchased in exchange for a $10,000 note payable.
4. Depreciation expense is included in operating expenses.
5. Accounts receivable are from the sale of merchandise on credit.
6. Accounts payable relate to the purchase of merchandise on credit.
Instructions
(a) Prepare a cash flow statement for the year using the indirect method.
(b) Prepare the operating section of the cash flow statement using the direct method.
TAKING IT FURTHER
Wetaskiwin Ltd. had a relatively small change in its cash balance in 2017; cash decreased by only $1,000. Is it still necessary or important to prepare a cash flow statement? Explain.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Accounting Principles

ISBN: 978-1119048473

7th Canadian Edition Volume 2

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

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