Question

Type or paste question hereiole Ltd., a private company reporting under ASPE, reported the following for the years ended May 31, 2021, and 2020.

ORIOLE LTD. Balance Sheet May 31
Assets		2021			2020
Cash		$20,600			$43,000
Accounts receivable		83,400			75,000
Inventory		169,000			156,000
Prepaid expenses		4,400			5,900
Land		117,000			72,000
Equipment		304,000			184,000
Accumulated depreciation		(62,200	)		(36,000	)
Total assets		$636,200			$499,900
Liabilities and Shareholders’ Equity
Accounts payable		$40,600			$36,000
Dividends payable		5,900			4,400
Income taxes payable		1,600			5,400
Mortgage payable		116,000			76,000
Common shares		211,000			162,000
Retained earnings		261,100			216,100
Total liabilities and shareholders’ equity		$636,200			$499,900

Additional Information:
1.		Profit for 2021 was $104,000.
2.		Common shares were issued for $49,000.
3.		Land with a cost of $49,000 was sold at a loss of $18,400.
4.		Purchased land with a cost of $94,000 with a $54,000 down payment and financed the remainder with a mortgage note payable.
5.		No equipment was sold during 2021.

Prepare a cash flow statement for the year using the indirect method

Answer 1