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The following selected data for the Food Factory Corporation were gathered by the accountants for the year ended December 31, 2013, who are responsible for preparing the financial statements:

Cost of goods sold   $47,300
depreciation expense   14,100
Other operating expenses   15,700
Loss on sale of investments   1,900
Gain on sale of capital assets   6,200
Sales revenue   99,700
Interest revenue   7,100
Dividend revenue   3,200
Salary expense   24,700
Interest expense   5,200
Income tax expense   2,700
Net income   4,600

The cash account began the year with a balance of $32,500 and ended the year with a balance of $191,500.

Other relevant data gathered by the accountants:

Accounts receivable decreased   $12,600
Inventory increased   7,800
Prepaid expenses decreased   2,300
Accounts payable increased   19,400
Salary payable increased   1,400
Accrued liabilities decreased   4,900
Income tax payable increased   700
Acquisition of capital assets   42,000
Issuance of common shares   75,000
Proceeds from sale of investments   29,000
Collection of loan principal   25,200
Payment of dividends   18,000
Purchased equipment by signing a note payable   25,000
Proceeds from sale of capital assets   26,700
Proceeds from sale of repurchased shares   25,000

Prepare the cash flow statement for the year ended December 31, 2013 under ASPE, using the indirect method and including a schedule of noncash investing and financing activities, if necessary.

Financial Accounting, Canadian Edition

Edition: 5th
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ACC 925
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Food Factory Corporation
   Cash Flow Statement
   For the Year Ended December 31, 2013

Cash flows from operating activities:
Net income      $4,600
Add (subtract) items that affect net income and
cash flows differently:
depreciation   $14,100
Loss on sale of investments   1,900
Gain on sale of capital assets   (6,200)
Change in accounts receivable   12,600
Change in inventory   (7,800)
Change in prepaid expenses   2,300
Change in accounts payable   19,400
Change in salary payable   1,400
Change in accrued liabilities   (4,900)
Change in income tax payable   700   33,500
Net cash inflow from operating activities      $38,100

Cash flows from investing activities:
Acquisition of capital assets   $(42,000)
Proceeds from sale of investments   29,000
Collections on loans   25,200
Proceeds from sale of investments   26,700
Net cash inflow from investing activities      38,900

Cash flows from financing activities:
Issuance of common shares   $75,000
Payment of dividends   (18,000)
Proceeds from sale of repurchased shares   25,000
Net cash inflow from financing activities      82,000
Net increase in cash      $159,000
Cash balance: January 1, 2013      32,500
Cash balance: December 31, 2013      $191,500

Noncash investing and financing activities:
Purchased equipment by signing note      $25,000
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