Exercise 22-16 (a) (indirect method) Information from the statement of financial
ID: 2557531 • Letter: E
Question
Exercise 22-16 (a) (indirect method) Information from the statement of financial position and statement of income are given below for Blue Road Inc., a company following IFRS, for the year ended December 31. Blue Road has adopted the policy of classifying interest paid as operating activities and dividends paid as financing activities. Comparative Statement of Financial Position, at December 31 2016 Cash Accounts receivable Inventory Investments in land Property, plant, and equipment Accumulated depreciation 2017 $89,300 92,000 124,900 87,300 $47,650 37,200 104,650 110,000 286,000 211,000 (49,300) (40,000) $630,200 $470,500 Accounts payable Accrued liabilities Notes payable Common shares Retained earnings $53,100 $48,480 19,230 72,000 250,000 203,000 127,790 $630,200 $470,500 12,300 132,000 182,800Explanation / Answer
Statement of Cash Flow Particulars Amount Total Amount Income 91,680.00 Gain on sale of invt (5,000.00) Gain on sale of Equipment (8,970.00) Depreciation 58,300.00 Increase in AR (54,800.00) Increase in inventory (20,250.00) Increase in AP 4,620.00 Increase in Notes Payable 60,000.00 Decrease in Accrued liabilities (6,930.00) Cash flow from operating activities 118,650.00 Cash flow from Investing activities Sale of invt 27,700.00 Sale of Equipment 17,370.00 Purchase of equipment = 286000 - (211000- 57400) -47000 (85,400.00) Cash flow from Investing activities (40,330.00) Cash flow from Financing activities Dividends Paid = (91680 - (182800-127790) (36,670.00) Cash flow from Financing activities (36,670.00) net change in cash and cash equivalents 41,650.00 Opening cash and cash equivalents 47,650.00 Closing cash and cash equivalents 89,300.00
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