Additional information regarding 2024: 1. Operating expenses include $74,000 of depreciation expense and a $14,600 loss on disposal of equipment. 2. No trading investments were bought or sold during the year, but management intends to trade some soon. 3. Prepaid expenses relate to operating expenses. 4. New equipment costing $98,730 was purchased by paying $17,530 cash and issuing common shares worth $81,200. These were the only common shares issued during the year. 5. Old equipment having an original cost of $75,700 was sold for $10,250. 6. Accounts payable relate to inventory suppliers. 7. A new $90,000 bank loan was received during the year and bank loan payments were also made during the year. 8. No common shares were issued for cash during the year, but some were bought back and cancelled at the same price that they were originally issued at. 9. The company paid dividends during the year. (a) Prepare the statement of cash flows, using the indirect method. (Show amounts that decrease cash flow with either a -sign e.g. -15,000 or in parenthesis e.g. (15,000).) The statement of income and unclassified statement of financial position for Blossom Inc. follow: Blossom Inc. Statement of Financial Position March 31 Assets 2024 2023 Cash $48,500 $99,270 Trading investments 209,200 224,400 Accounts receivable 112,800 40,600 Inventory 275,180 199,700 Estimated inventory returns 10,600 3,200 Prepaid expenses 25,865 35,775 Equipment 308,000 284,970 Accumulated depreciation (88,945) (65,795) Total assets $901,200 $822,120 Liabilities and Shareholders' Equity Accounts payable $94,130 $90,760 Refund liability 5,420 2,410 Deferred revenue 11,200 5,800 Bank loan payable-current portion 130,400 98,600 Bank loan payable-non-current portion 90,600 156,920 Common shares 296,000 274,000 Retained earnings 273,450 193,630 Total liabilities and shareholders' equity $901,200 $822,120
Additional information regarding 2024: 1. Operating expenses include $74,000 of depreciation expense and a $14,600 loss on disposal of equipment. 2. No trading investments were bought or sold during the year, but management intends to trade some soon. 3. Prepaid expenses relate to operating expenses. 4. New equipment costing $98,730 was purchased by paying $17,530 cash and issuing common shares worth $81,200. These were the only common shares issued during the year. 5. Old equipment having an original cost of $75,700 was sold for $10,250. 6. Accounts payable relate to inventory suppliers. 7. A new $90,000 bank loan was received during the year and bank loan payments were also made during the year. 8. No common shares were issued for cash during the year, but some were bought back and cancelled at the same price that they were originally issued at. 9. The company paid dividends during the year. (a) Prepare the statement of cash flows, using the indirect method. (Show amounts that decrease cash flow with either a -sign e.g. -15,000 or in parenthesis e.g. (15,000).) The statement of income and unclassified statement of financial position for Blossom Inc. follow: Blossom Inc. Statement of Financial Position March 31 Assets 2024 2023 Cash $48,500 $99,270 Trading investments 209,200 224,400 Accounts receivable 112,800 40,600 Inventory 275,180 199,700 Estimated inventory returns 10,600 3,200 Prepaid expenses 25,865 35,775 Equipment 308,000 284,970 Accumulated depreciation (88,945) (65,795) Total assets $901,200 $822,120 Liabilities and Shareholders' Equity Accounts payable $94,130 $90,760 Refund liability 5,420 2,410 Deferred revenue 11,200 5,800 Bank loan payable-current portion 130,400 98,600 Bank loan payable-non-current portion 90,600 156,920 Common shares 296,000 274,000 Retained earnings 273,450 193,630 Total liabilities and shareholders' equity $901,200 $822,120
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Additional information regarding 2024:
1. Operating expenses include $74,000 of depreciation expense and a $14,600 loss on disposal of equipment.
2.
No trading investments were bought or sold during the year, but management intends to trade some soon.
3.
Prepaid expenses relate to operating expenses.
4.
New equipment costing $98,730 was purchased by paying $17,530 cash and issuing common shares worth $81,200. These
were the only common shares issued during the year.
5.
Old equipment having an original cost of $75,700 was sold for $10,250.
6.
Accounts payable relate to inventory suppliers.
7.
A new $90,000 bank loan was received during the year and bank loan payments were also made during the year.
8.
No common shares were issued for cash during the year, but some were bought back and cancelled at the same price that
they were originally issued at.
9.
The company paid dividends during the year.
(a) Prepare the statement of cash flows, using the indirect method. (Show amounts that decrease cash flow with either a -sign e.g. -15,000
or in parenthesis e.g. (15,000).)
Transcribed Image Text:The statement of income and unclassified statement of financial position for Blossom Inc. follow:
Blossom Inc.
Statement of Financial Position
March 31
Assets
2024
2023
Cash
$48,500
$99,270
Trading investments
209,200
224,400
Accounts receivable
112,800
40,600
Inventory
275,180
199,700
Estimated inventory returns
10,600
3,200
Prepaid expenses
25,865
35,775
Equipment
308,000
284,970
Accumulated depreciation
(88,945)
(65,795)
Total assets
$901,200 $822,120
Liabilities and Shareholders' Equity
Accounts payable
$94,130
$90,760
Refund liability
5,420
2,410
Deferred revenue
11,200
5,800
Bank loan payable-current portion
130,400
98,600
Bank loan payable-non-current portion
90,600
156,920
Common shares
296,000
274,000
Retained earnings
273,450
193,630
Total liabilities and shareholders' equity
$901,200 $822,120
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