Current Attempt in Progress

The statement of income and unclassified statement of financial position for Carla Vista Inc. follow:

Carla Vista Inc. Statement of Financial Position December $31$

Assets

$2024$

$2023$

Cash

$$82,500$

$$47,000$

Accounts receivable

$79,700$

$36,600$

Inventory

$129,000$

$101,000$

Estimated inventory returns

$1,610$

$1,100$

Long$-$term investments

$94,000$

$108,000$

Equipment

$287,300$

$203,000$

Accumulated depreciation

$(49\mathrm{.}700)$

$(40,100)$

Total assets

$$624,410$

$$456,600$

Liabilities and Shareholders' Equity

Accounts payable

$$63,100$

$$48,600$

Property tax payable

$11\mathrm{.}300$

$17,900$

Refund liability

$950$

$640$

Bank loan payable$-$current portion

$125,000$

$59,800$

Bank loan payable$-$non$-$current portion

$14,100$

$9,900$

Common shares

$241,000$

$202,000$

Retained earnings

$168,960$

$117,760$

Total liabilities and shareholders' equity

$$624\mathrm{.}410$

$$456,600$Carla Vista Inc. Statement of Income Year Ended December $31,2024$

Sales

$$321,000$

Cost of goods sold

$99,700$

Gross profit

$221,300$

Operating expenses

$82\mathrm{.}100$

Income from operations

$139\mathrm{.}200$

Other income and expenses

Interest expense

$$13,000$

Realized loss on sale of long$-$term investments

$8,700$

$21,700$

Income before income tax

$117,500$

Income tax expense

$27\mathrm{.}830$

Net income

$$89\mathrm{.}670$

Additional information regarding $2024$:

$1$ Long$-$term investments were sold for $$5,300,$ resulting in a realized loss of $$8,700.$

$2.$ New equipment costing $$140,000$ was purchased for $$70,600$ cash and a $$69,400$ bank loan payable.

$3.$ Equipment costing $$55,700$ was sold for $$15,400,$ resulting in a gain of $$8,900.$

$4.$ Accounts payable relate to merchandise suppliers; property tax payable relates to operating expenses.

$5.$ A dividend was paid during the year.

$6.$ Operating expenses include $$58,800$ of depreciation expense and an $$8,900$ gain on disposal of equipment.

$7.$ The company issued common shares for $$60,000$ cash and bought back and retired some other common shares at the cost they were originally issued at$.$

$($a$)$ Prepare the statement of cash flows using the direct method. $($Show amounts that decrease cash flow with either a sign e$..-15,000$ in parenthesis eg$.(15,000).)$Current Attempt in Progress

The statement of income and unclassified statement of financial position for Carla Vista Inc. follow:

Additional information regarding $2024$:

Long$-$term investments were sold for $$5,300,$ resulting in a realized loss of $$8,700.$

New equipment costing $$140,000$ was purchased for $$70,600$ cash and a $$69,400$ bank loan payable.

Equipment costing $$55,700$ was sold for $$15,400,$ resulting in a gain of $$8,900.$

Accounts payable relate to merchandise suppliers; property tax payable relates to operating expenses.

A dividend was paid during the year.

Operating expenses include $$58,800$ of depreciation expense and an $$8,900$ gain on disposal of equipment.

The company issued common shares for $$60,000$ cash and bought back and retired some other common shares at the cost

they were originally issued at$.$

$($a$)$ Prepare the statement of cash flows using the direct method. $($Show amounts that decrease cash flow with either $a-$ sign e$.$g$.-15,000$ or

in parenthesis e$.$g$.(15,000).)$