Reference no: EM132481505
Information from the statement of financial position and statement of income is given below for Grouper Road Inc., a company following IFRS, for the year ended December 31. Grouper 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- 2020; 2019
Cash $94,500; $48,050
Accounts receivable 91,700; 37,400
Inventory 132,800; 112,650
Investments in land 87,800; 111,000
Property, plant, and equipment 290,000; 211,000
Accumulated depreciation (48,500); (40,000)
Accounts payable $54,100; $48,680
Accrued liabilities 12,200; 19,630
Notes payable 144,000; 80,000
Common shares 255,000; 204,000
Retained earnings 183,000; 127,790
Statement of Income, year ended December 31, 2020
Revenues
Sales revenue $291,220
Gain on disposal of investment in land 5,000
Gain on disposal of equipment 8,950
Expenses
Cost of goods sold $99,160
Depreciation expense 57,600
Operating expenses 4,690
Income tax expense 39,000
Interest expense 2,740
Net income $91,980
Additional information:
1. Investments in land were sold at a gain during 2020.
2. Equipment costing $57,800 was sold for $17,650, resulting in a gain.
3. Common shares were issued in exchange for some equipment during the year. No other shares were issued.
4. The remaining purchases of equipment were paid for in cash.
Question 1: Prepare statement of cash flows for the year ended December 31, 2020, using the indirect method.