Reference no: EM133114110
Question - The condensed comparative statement of financial position and income statement (statements not in proper form) for IQALUIT Inc. as at/ for the year ended December 31, 2021, are as follows:
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IQALUIT INC. Statement of Financial Position December 31,
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2021
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2020
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Cash
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$16,150
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$12,500
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Accounts receivable
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52,700
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23,200
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Interest receivable
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2,720
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900
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Notes receivable
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34,000
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18,500
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Inventory
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108,120
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56,000
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Investments - at cost
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34,000
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16,250
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Land
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19,000
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28,000
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Building
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170,000
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72,000
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Accumulated dep - building
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(81,600)
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(40,000)
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Equipment
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59,500
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36,800
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Accumulated dep - equip
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(34,000)
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(26,400)
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Total assets
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$380,590
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$197,750
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Accounts payable
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$48,552
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$24,800
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Accrued liabilities
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8,568
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5,600
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Unearned revenue
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5,000
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6,400
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Income tax payable
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5,848
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5,000
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Dividends payable
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7,820
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3,200
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Loans payable
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34,000
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25,000
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Total liabilities
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109,788
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70,000
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Common shares
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81,000
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32,000
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Retained earnings
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189,802
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95,750
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Total shareholders' equity
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270,802
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127,750
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Total liabilities and shareholders' equity
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$380,590
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$197,750
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IQALUIT INC. Income Statement for the Year Ended December 31, 2021
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Sales
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$609,000
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Cost of merchandise sold
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263,760
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Gross profit
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345,240
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Salary & admin expense
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105,000
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Interest expense
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3,990
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Depreciation expense - building
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41,600
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equipment
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20,400
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Interest income
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(6,720)
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Gain on sale of equipment
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(2,415)
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Loss on sale of land
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4,200
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Income tax expense
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38,325
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204,380
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Net income
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$140,860
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The following is additional information about IQALUIT's transactions during 2021:
1. Land: Land was sold for cash. No land was purchased.
2. Building: No buildings were disposed/sold. A building was purchased for cash.
3. Equipment: Equipment with a cost of $39,000 was sold for cash. Equipment was purchased with a value of $3,500 in exchange for common shares and the remaining equipment was purchased for cash.
4. Investments were purchased for cash. Loans were taken out for cash and remaining common shares were issued for cash.
5. The only changes in retained earnings were for net income and dividends.
IQALUIT Inc. follows ASPE.
Required -
1. Prepare the entire statement of cash flows in good form for IQALUIT Inc. for the year ended December 31, 2021. Prepare the operating activities section using the indirect method.
Ensure you show all your calculations below. (See (b) as well.)
Provide full calculations for the investing activities section.
2. Calculate for IQALUIT Inc. for the year ending December 31, 2021:
1. Cash received from customers
2. Cash received for interest
3. Cash paid for income taxes
4. Cash paid for interest