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The comparative statement of financial position of Blue Spruce Corporation as at December 31, 2020, follows:...

The comparative statement of financial position of Blue Spruce Corporation as at December 31, 2020, follows:

The comparative statement of financial position of Monty Inc. as at June 30, 2020, and a statement of comprehensive income for the 2020 fiscal year follow:

MONTY INC.
Statement of Financial Position
June 30, 2020
June 30
Assets 2020 2019
Cash $ 20,000 $ 42,000
Accounts receivable 86,100 74,100
Inventory 104,000 102,000
Prepaid expenses 2,100 5,600
FV-OCI investments 47,100 45,200
Equipment 177,000 159,000
Accumulated depreciation—equipment (34,500 ) (25,000 )
   Total $ 401,800 $ 402,900
Liabilities and Shareholders’ Equity
Accounts payable $ 110,000 $ 102,500
Income tax payable 2,200 3,100
Dividends payable 4,300 0
Long-term notes payable 89,300 120,500
Common shares 30,400 24,600
Retained earnings 154,600 143,100
Accumulated other comprehensive income 11,000 9,100
   Total $ 401,800 $ 402,900
MONTY INC.
Statement of Comprehensive Income
For the Year Ended June 30, 2020
Net sales $320,000
Cost of goods sold 161,000
Gross profit 159,000
Operating expenses 123,000
Income from operations 36,000
Interest expense 9,000
Income before income tax 27,000
Income tax 5,900
Net income 21,100
Other comprehensive income
  Unrealized gain or loss—OCI 1,900
Comprehensive income $ 23,000


Additional information:

1. Monty follows IFRS. Assume that interest is treated as an operating activity for purposes of the statement of cash flows.
2. Operating expenses include $9,500 in depreciation expense.
3. There were no disposals of equipment during the year.
4. Common shares were issued for cash.
5. During the year, Monty acquired $8,400 of equipment in exchange for long-term notes payable.

(a)

Prepare the statement of cash flows for Monty for the year ended June 30, 2020, using the indirect method along with any necessary note disclosure


Net income of $37,900 was reported and dividends of $12,500 were declared and paid in 2020. New equipment was purchased, and equipment with a carrying value of $4,800 (cost of $11,900 and accumulated depreciation of $7,100) was sold for $8,100.

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ekkarill92 answered 2 years ago
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