FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:1. Equipment with an original cost of $75,100 was sold during the year.
2. New equipment was purchased during the year
3. No stock dividends were declared during the year.
4. The company split its stock 3-for-1 during the year.
Required
Prepare a Statement of Cash Flows in good form using the indirect method for the year ended
December 31, 2021. Provide all supporting calculations.
Place your statement and supporting caleulations here
Steps
Place supporting calculations here for the Statement of Cash Flows
indirect method: starting point is net income, a reconciliation is required
to adjust it to a cash basis
Transcribed Image Text:Orange Inc. had the following financial data related to the year ended December 31, 2021.
Balance Sheet information
As at December 31
2021
2020
Cash
$270,040
$138,880
Accounts receivable
136,360
58,800
Inventory
155,250
143,420
Equipment
351,000
(2)
291,000
Accumulated depreciation
(65.000)
(62.400)
S847.650
$569,700
Accounts Payable
s106,393
S 80,760
Income Taxes Payable
11,450
10,400
Dividends Payable
33,607
10,000
Bonds Payable
100,000
132,000
Common Shares
282,000
198,000
Retained Earnings
314.200
138.540
S847,650
$569,700
Income Statement
For Year ended December 31
Sales
$479,892
Cost of goods sold
$161,644
Amortization expense
58,800
Other expenses
17,374
Income tax expense
10,185
Interest expense
5,822
Loss on sale of equipment
16,800
(270,625)
Net Income
$209,267
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