Make a statement of cash flows in proper format

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Question - White Horse Ltd. has prepared the following comparative statements of financial position at December 31, 2019 and 2020: White Horse adheres to ASPE.

 

2020

2019

Cash

$150,000

$109,000

Accounts receivable

53,000

39,000

Inventory

50,000

60,000

Prepaid expenses

6,000

9,000

Property, plant & equipment

420,000

350,000

Accumulated depreciation

(150,000)

(125,000)

 

$529,000

$442,000

Accounts payable

$51,000

$56,000

Accrued liabilities

20,000

14,000

Mortgage payable

-

150,000

Preferred shares

215,000

-

Common shares

200,000

200,000

Retained earnings

43,000

22,000

 

$529,000

$442,000

Additional information:

1. There were no disposals of property, plant and equipment, but new equipment was purchased during 2020.

2. Depreciation expense was included in operating expenses.

3. Cash dividends declared and paid for the year.

The condensed income statement for 2020 is as follows:

Sales $660,000

Cost of sales 363,000

Gross profit 297,000

Operating expenses 230,000

Net income $67,000

Required - Using the above information make a statement of cash flows in proper format using indirect method for period ending December 31, 2020.

Reference no: EM132728501

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