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:

IQALUIT INC. Statement of Financial Position December 31,
	2021	2020
Cash	$16,150	$12,500
Accounts receivable	52,700	23,200
Interest receivable	2,720	900
Notes receivable	34,000	18,500
Inventory	108,120	56,000
Investments - at cost	34,000	16,250
Land	19,000	28,000
Building	170,000	72,000
Accumulated dep - building	(81,600)	(40,000)
Equipment	59,500	36,800
Accumulated dep - equip	(34,000)	(26,400)
Total assets	$380,590	$197,750
Accounts payable	$48,552	$24,800
Accrued liabilities	8,568	5,600
Unearned revenue	5,000	6,400
Income tax payable	5,848	5,000
Dividends payable	7,820	3,200
Loans payable	34,000	25,000
Total liabilities	109,788	70,000
Common shares	81,000	32,000
Retained earnings	189,802	95,750
Total shareholders' equity	270,802	127,750
Total liabilities and shareholders' equity	$380,590	$197,750

 

IQALUIT INC. Income Statement for the Year Ended December 31, 2021
Sales		$609,000
Cost of merchandise sold		263,760
Gross profit		345,240
Salary & admin expense	105,000
Interest expense	3,990
Depreciation expense - building	41,600
equipment	20,400
Interest income	(6,720)
Gain on sale of equipment	(2,415)
Loss on sale of land	4,200
Income tax expense	38,325	204,380
Net income		$140,860

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