(Solved) You are reviewing the financial statements of three companies in the same industry. Specifically, ...

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You are reviewing the financial statements of three companies in the same industry. Specifically, ...

You are reviewing the financial statements of three companies in the same industry. Specifically, you are interested in the transactions surrounding capital assets during the past year. The following information is available for the three companies. Compute the unknowns.

   Sunlight Co.   Photo Co.   Synthesis Co.
Beginning capital assets, net of depreciation   $850,500   $712,200   $488,300
Ending capital assets, net of depreciation   960,000   706,800   284,400
depreciation expense   65,200   49,300   (c)
Gain (loss) on sale of capital assets   5,500   (b)   (16,800)
Costs of capital assets acquired   230,600   128,000   55,600
Proceeds from sale of capital assets   (a)   72,500   184,900

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Exploring Microsoft Office 2013, Volume 2, Canadian Edition

Edition: 1^st

Authors: Grauer, Jenne, Igonor

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ily p.

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Given the following information for Grumpy Cat Incorporated prepare their statement of cash flows for December 31, 2023 under ASPE.

   2023   2022
Cash   375,000   250,000
Accounts receivable   85,000   75,000
Interest receivable   5,000   6,000
Inventory   80,000   95,000
Prepaid Expenses   48,000   10,000
Non-current - Note   90,000   125,000
Property, plant and Equipment (net of depreciation)   325,000   330,000
Accounts payable   33,000   20,000
Accrued liabilities   45,000   56,000
Common Shares   825,000   755,000
Retained Earnings   105,000   60,000
Net income   50,000
Depreciation expense   2,000
Gain on sale of property   1,500

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Anonymous

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Excerpt

Statement of Cash Flows
For the Year Ended December 31, 2023

Cash Flows from Operating Activities:
- Net income:

$50,000$
Adjustments for non-cash items:
- Depreciation expense:

$2,000$
- Gain on sale of property:

$(1,500)$

Changes in non-cash working capital:
- Increase in accounts receivable:

$(85,000 - 75,000) = (10,000)$
- Decrease in interest receivable:

$(6,000 - 5,000) = 1,000$
- Decrease in inventory:

$(95,000 - 80,000) = 15,000$
- Increase in prepaid expenses:

$(48,000 - 10,000) = (38,000)$
- Increase in accounts payable:

$(33,000 - 20,000) = 13,000$
- Decrease in accrued liabilities:

$(45,000 - 56,000) = (11,000)$

Net cash provided by operating activities:

$50,000 + 2,000 - 1,500 - 10,000 + 1,000 + 15,000 - 38,000 + 13,000 - 11,000 = 20,500$

Cash Flows from Investing Activities:
- Proceeds from sale of property, plant, and equipment:

$1,500$
Net cash provided by investing activities:

$1,500$

Cash Flows from Financing Activities:
- Issuance of common shares:

$(825,000 - 755,000) = 70,000$
- Repayment of note payable:

$(125,000 - 90,000) = (35,000)$

Net cash provided by financing activities:

$70,000 - 35,000 = 35,000$

Net Increase in Cash:

$20,500 + 1,500 + 35,000 = 57,000$

Cash at the Beginning of the Year:

$250,000$

Cash at the End of the Year:

$250,000 + 57,000 = 375,000$

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