70.2K

Verified Solution

Link Copied!

CULLUMBER LTD Statement of Cash Flows-Indirect Method Adjustments to reconcile net income to CULLUMBER LTD Statement of Financial Position December 31 2018 Assets Cash Accounts receivable Inventory Long-term investments Equipment Accumulated depreciation Total assets 2017 $53,000 $23,000 67,500 183,000 193,000 70,000 105,000 295,000154,000 (69,000) (30,000) $619,000 $512,500 87,000 Liabilities and Shareholders' Equity Accounts payable Bank loan payable Common shares Retained earnings Total liabilities and shareholders' equity $619,000 $35,000 51,000 144,000 151,500 220,000 170,000 220,000 140,000 $512,500 Additional information: 1. Net income was $112,700. 2. Sales were $988,000. 3. Cost of goods sold was $758,000. 4. Operating expenses were $45,000, exclusive of depreciation expense 5. Depreciation expense was $39,000. 6. Interest expense was $15,000. 7. Income tax expense was $24,000 8. Long-term investments were sold at a gain of $5,700. 9. No equipment was sold during the year. 10. $7,500 of the bank loan was repaid during the year. 11. Common shares were issued for $50,000 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 in parenthesis e.g. (45,000).)

Answer & Explanation Solved by verified expert

See Answer