RAMBLE CORPORATION Statement of Financial Position December 31 Assets 2020 2019 Cash $78,000 $34,800 Accounts receivable...

RAMBLE CORPORATION Statement of Financial Position
	December 31
Assets	2020		2019
Cash	$78,000		$34,800
Accounts receivable	104,400		70,800
Inventory	159,600		97,200
FV-OCI investments in shares	75,600		100,800
Land	78,000		123,600
Equipment	468,000		516,000
Accumulated depreciation—equipment	(140,400	)	(103,200	)
Goodwill	148,800		207,600
Total	$972,000		$1,047,600
Liabilities and Shareholders’ Equity
Accounts payable	$14,400		$61,200
Dividends payable	18,000		38,400
Notes payable	264,000		402,000
Common shares	318,000		150,000
Retained earnings	345,600		340,800
Accumulated other comprehensive income	12,000		55,200
Total	$972,000		$1,047,600

Additional information:

1.		Net income for the fiscal year ending December 31, 2020, was $22,800.
2.		In March 2020, a plot of land was purchased for future construction of a plant site. In November 2020, a different plot of land with original cost of $103,200 was sold for proceeds of $114,000.
3.		In April 2020, notes payable amounting to $168,000 were retired through the issuance of common shares. In December 2020, notes payable amounting to $30,000 were issued for cash.
4.		FV-OCI investments were purchased in July 2020 for a cost of $18,000. By December 31, 2020, the fair value of Bramble’s portfolio of FV—OCI investments decreased to $75,600. No FV—OCI investments were sold in the year.
5.		On December 31, 2020, equipment with an original cost of $48,000 and accumulated depreciation to date of $14,400 was sold for proceeds of $25,200. No equipment was purchased in the year.
6.		Dividends on common shares of $38,400 and $18,000 were declared in December 2019 and December 2020, respectively. The 2019 dividend was paid in January 2020 and the 2020 dividend was paid in January 2021. Dividends paid are treated as financing activities.
7.		A loss on impairment was recorded in the year to reflect a decrease in the recoverable amount of goodwill. No goodwill was purchased or sold in the year.

(a)

Prepare a statement of cash flows using the indirect method for cash flows from operating activities.

RAMBLE CORPORATION Statement of Financial Position
	December 31
Assets	2020		2019
Cash	$78,000		$34,800
Accounts receivable	104,400		70,800
Inventory	159,600		97,200
FV-OCI investments in shares	75,600		100,800
Land	78,000		123,600
Equipment	468,000		516,000
Accumulated depreciation—equipment	(140,400	)	(103,200	)
Goodwill	148,800		207,600
Total	$972,000		$1,047,600
Liabilities and Shareholders’ Equity
Accounts payable	$14,400		$61,200
Dividends payable	18,000		38,400
Notes payable	264,000		402,000
Common shares	318,000		150,000
Retained earnings	345,600		340,800
Accumulated other comprehensive income	12,000		55,200
Total	$972,000		$1,047,600

Additional information:

1.		Net income for the fiscal year ending December 31, 2020, was $22,800.
2.		In March 2020, a plot of land was purchased for future construction of a plant site. In November 2020, a different plot of land with original cost of $103,200 was sold for proceeds of $114,000.
3.		In April 2020, notes payable amounting to $168,000 were retired through the issuance of common shares. In December 2020, notes payable amounting to $30,000 were issued for cash.
4.		FV-OCI investments were purchased in July 2020 for a cost of $18,000. By December 31, 2020, the fair value of Bramble’s portfolio of FV—OCI investments decreased to $75,600. No FV—OCI investments were sold in the year.
5.		On December 31, 2020, equipment with an original cost of $48,000 and accumulated depreciation to date of $14,400 was sold for proceeds of $25,200. No equipment was purchased in the year.
6.		Dividends on common shares of $38,400 and $18,000 were declared in December 2019 and December 2020, respectively. The 2019 dividend was paid in January 2020 and the 2020 dividend was paid in January 2021. Dividends paid are treated as financing activities.
7.		A loss on impairment was recorded in the year to reflect a decrease in the recoverable amount of goodwill. No goodwill was purchased or sold in the year.

(a)

Prepare a statement of cash flows using the indirect method for cash flows from operating activities.

Expert Solution

ekkarill92 answered 1 year ago

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