Flounder Limited, which follows IFRS, has adopted the policy of classifying interest paid as operating...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Flounder Limited, which follows IFRS, has adopted the policy of classifying interest paid as operating activities and dividends paid as financing activities. Condensed financial data for 2020 and 2019 follow (in thousands):
FLOUNDER LIMITED Comparative Statement of Financial Position December 31
2020
2019
Cash
$2,010
$1,150
FV-NI investments
1,300
1,420
Accounts receivable
1,845
1,350
Inventory
1,660
2,030
Plant assets
2,005
1,790
Accumulated depreciation
(1,200
)
(1,170
)
$7,620
$6,570
Accounts payable
$1,295
$950
Accrued liabilities
290
340
Mortgage payable
1,370
1,590
Common shares
2,080
1,790
Retained earnings
2,585
1,900
$7,620
$6,570
FLOUNDER LIMITED Income Statement Year Ended December 31, 2020
Sales
$6,885
Cost of goods sold
4,700
Gross margin
2,185
Administrative expenses
910
Income from operations
1,275
Other expenses and gains
Interest expense
$(20
)
Gain on disposal of FV-NI investments
80
60
Income before tax
1,335
Income tax expense
405
Net income
$930
Additional information: During the year, $70 of common shares were issued in exchange for plant assets. No plant assets were sold in 2020. The FV-NI investments carrying amount and market value were the same at December 31, 2020. Prepare a 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). Enter amounts in thousands.)
My question is how do you calculate : Proceeds from the the sale of FV-NI Investments ?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!