FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Seaforce Manufacturing Inc. comparative balance sheet at December 31 20X5
Cash
Accounts Receivable
Inventory
Prepaid Expenses
Equipment
Accumulated Depreciation - equipment
Total Assets
Account Payable
Interest Payable
Income taxes payable
Dividends Payable
Long-term Notes Payable
Common shares
Retained Earnings
Total Liabilities & Shareholders' Equity
20X5
20X4
$ 6,450
$ 4,100
$ 72,000 $ 6,500
$110,250
$ 1,750
$ 96,000 $100,000
$(50,000)
$(42,000)
$236,450
$209,620
$ 16,230
810
$
$ 10,800
$ 1,800
$ 54,500
$135,000
$ 16,310
$236,450
$140,000
$ 1,020
$ 9,900
10
$ 9,500
$ 2,800
$ 62,000
$123,000
$ 2,410
$209,620
By how much the change in Accounts Payable has generated or (used) cash when the indirect method is used to prepare the cash flow statement?
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Transcribed Image Text:Seaforce Manufacturing Inc. comparative balance sheet at December 31 20X5 Cash Accounts Receivable Inventory Prepaid Expenses Equipment Accumulated Depreciation - equipment Total Assets Account Payable Interest Payable Income taxes payable Dividends Payable Long-term Notes Payable Common shares Retained Earnings Total Liabilities & Shareholders' Equity 20X5 20X4 $ 6,450 $ 4,100 $ 72,000 $ 6,500 $110,250 $ 1,750 $ 96,000 $100,000 $(50,000) $(42,000) $236,450 $209,620 $ 16,230 810 $ $ 10,800 $ 1,800 $ 54,500 $135,000 $ 16,310 $236,450 $140,000 $ 1,020 $ 9,900 10 $ 9,500 $ 2,800 $ 62,000 $123,000 $ 2,410 $209,620 By how much the change in Accounts Payable has generated or (used) cash when the indirect method is used to prepare the cash flow statement?
Seaforce Manufacturing Inc.
Income Statement
Year Ended December 31, 20X5
Sale
Cost of goods sold
Gross Profit
Operating Expenses
Loss on Sale of equipment
Profit from Operations
Other expenses
Interest Expense
Profit before Income Tax
Income Tax Expense
Profit
Additional Information:
$55,000
$ 2,500
$340,000
$250, 100
$ 89,900
$57,500
$ 32,400
$ 3,500
$ 28,900
$ 12,000
$ 16,900
1. Operating expenses include depreciation expense of $10,000
2. Accounts Payable related to the purchase of inventory
3. Equipment that cost $12,500 was sold at a loss of $2,500
4. New equipment was purchased during the year for $8,500
5. Dividends declared and paid in 20X5 totaled $3,000
6. Common shares were sold for $12,000 cash
7. Interest payable in 20X5 was $800 greater than interest payable in 20X4
8. The company uses IFRS and do not treat dividends as part of operations
Seaforce Manufacturing Inc. comparative balance sheet at December 31 20X5
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Transcribed Image Text:Seaforce Manufacturing Inc. Income Statement Year Ended December 31, 20X5 Sale Cost of goods sold Gross Profit Operating Expenses Loss on Sale of equipment Profit from Operations Other expenses Interest Expense Profit before Income Tax Income Tax Expense Profit Additional Information: $55,000 $ 2,500 $340,000 $250, 100 $ 89,900 $57,500 $ 32,400 $ 3,500 $ 28,900 $ 12,000 $ 16,900 1. Operating expenses include depreciation expense of $10,000 2. Accounts Payable related to the purchase of inventory 3. Equipment that cost $12,500 was sold at a loss of $2,500 4. New equipment was purchased during the year for $8,500 5. Dividends declared and paid in 20X5 totaled $3,000 6. Common shares were sold for $12,000 cash 7. Interest payable in 20X5 was $800 greater than interest payable in 20X4 8. The company uses IFRS and do not treat dividends as part of operations Seaforce Manufacturing Inc. comparative balance sheet at December 31 20X5
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