Problem 3 (25 marks) Eagles Inc. had the following statement of financial position at the end...

Problem 3 Eagles Inc. had the following statement of financial position at the end of operations for 2017:

Cash 32000 Accounts payable 48000 Accounts receivable 33920 Bonds payable 65600 FV-NI investments 51200 Common shares 160000 Equipment (net) 129600 Retained earnings 37120 Land 64000 Total 310720 310720

During 2018, the following occurred:

1. Eagles sold its FV-NI investments portfolio at a gain of $9,600.

2. A parcel of land was purchased for $75,200.

3. An additional $60,800 worth of common shares was issued.

4. Dividends totalling $19,200 were declared and paid to shareholders.

5. Net income for 2018 was $73,600.

6. Depreciation for 2018 was 19,200.

7. At December 31, 2018, Cash was $125,120; Accounts Receivable was $67,200; and Accounts Payable was $64,000.

1. Prepare the statement of financial position as it would appear at December 31, 2018.

2Prepare a statement of cash flows for the year ended December 31, 2018 using the indirect method. Assume dividends paid are treated as financing activities

Expert Solution

ekkarill92 answered 1 year ago

Eagles Inc. had the following statement of financial position at the end of operations for 2017:...

Eagles Inc. had the following statement of financial position at the end of operations for 2017: Cash 32000 Accounts payable 48000 Accounts receivable 33920 Bonds payable 65600 FV-NI investments 51200 Common shares 160000 Equipment (net) 129600 Retained earnings 37120 Land 64000 310720 310720 During 2018, the following occurred:+ 1. Eagles sold its FV-NI investments portfolio at a gain of $9,600. 2. A parcel of land was purchased for $75,200. 3. An additional $60,800 worth of common shares was issued. 4....

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