Use the following information to answer questions 1 and 2. Islanders...
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Accounting
Use the following information to answer questions 1 and 2.
Islanders Inc. | ||
Statement of financial position | ||
As at December 31 | ||
20X3 | 20X2 | |
Accounts receivable | $160,000 | $110,000 |
Inventory | 62,000 | 50,000 |
Prepaid expenses | 3,000 | 4,000 |
Investments at FVPL | 18,000 | 40,000 |
Investments at FVOCI | 18,000 | 13,000 |
Property, plant and equipment (net) | 80,000 | 100,000 |
Land | 180,000 | 94,000 |
$521,000 | $411,000 | |
Bank overdraft | $9,000 | $32,000 |
Accounts payable | 30,000 | 20,000 |
Other current liabilities | 45,000 | 60,000 |
Bank loans | 37,000 | 50,000 |
Bonds payable | 200,000 | 100,000 |
Share capital | 30,000 | 10,000 |
Retained earnings | 159,000 | 133,000 |
Reserves (AOCI) | 11,000 | 6,000 |
$521,000 | $411,000 |
Islanders Inc. | |
Statement of comprehensive income | |
Year ended December 31 | |
20X3 | |
Sales | $555,000 |
Depreciation expense | 20,000 |
Interest expense | 4,000 |
Other expenses | 380,000 |
Operating income | $151,000 |
Gain on sale of land | 5,000 |
Loss on disposition of investment at FVPL | (2,000) |
Net income before income tax expense | $154,000 |
Income tax expense | 24,000 |
Net income | $130,000 |
Other comprehensive income | 5,000 |
Comprehensive income | $135,000 |
Additional information:
In 20X3, Islanders Inc. issued $100,000 in bonds to acquire land having a fair value of
$100,000.
a. What is the amount that Islanders Inc. will report as cash from investing activities on its statement of cash flows for its year ended December 31, 20X3?
b. What is the amount that Islanders Inc. will report as cash from financing activities on its statement of cash flows for its year ended December 31, 20X3?
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