Question

In: Accounting

Fantasy Corp. Statement of financial position As at December 31 20X4 20X3 Cash $ 43,000 $...

Fantasy Corp. Statement of financial position As at December 31 20X4 20X3 Cash $ 43,000 $ 28,000 Accounts receivable 117,000 104,000 Inventory 59,000 64,000 Prepaid expenses 8,000 6,000 Investment in financial assets at amortized cost 44,000 42,000 Investment in associate 260,000 224,000 Property, plant and equipment (net) 479,000 325,000 Land 200,000 200,000 $ 1,210,000 $ 993,000 Accounts payable $ 30,000 $ 20,000 Income taxes payable 4,000 7,000 Dividends payable 16,000 13,000 Other current liabilities 68,000 54,000 Finance lease 200,000 0 Long-term debt 360,000 0 Bonds payable 0 498,000 Share capital 180,000 150,000 Retained earnings 352,000 251,000 $ 1,210,000 $ 993,000 Fantasy Corp. Statement of comprehensive income Year ended December 31 20X4 Sales $ 562,000 Depreciation expense (60,000) Interest expense (18,000) Other expenses (294,000) Interest revenue 11,000 Investment income — associate 64,000 $ 265,000 Loss on sale of property, plant and equipment (10,000) Gain on redemption of bonds 6,000 Income before income tax expense $ 261,000 Income tax expense (64,000) Net and comprehensive income $ 197,000 Additional information: A $30,000 stock dividend was declared and distributed during 20X4. $200,000 of equipment was acquired under a finance lease at the end of 20X4. Equipment with a net book value of $70,000 was disposed of during 20X4. The change in value of the investment in financial assets at amortized cost was due to amortization of the discount. Fantasy Corp. shareholdings in its associate did not change during the year. Fantasy Corp. elects to classify interest and dividends received and interest paid as operating activities and dividends paid as financing activities Fantasy Corp. accounts for its investments is associates using the equity method. Fantasy Corp. received $28,000 cash in dividends from associates. 1. What is the amount that Fantasy Corp. will report as cash from investing activities on its statement of cash flows for its year ended December 31, 20X4? a) $46,000 cash inflow b) $14,000 cash outflow c) $24,000 cash outflow d) $154,000 cash outflow

Solutions

Expert Solution

C. 24,000 cash outflow

Statement of Cash flow from Investing Activities
Sale of Property, plant and equipment (net)      60,000.00
Purchase of Property, plant and equipment (net)    (84,000.00)
Cash Inflow from Investing Activities    (24,000.00)
Loss on sale of Property Plant and Equipment    196,000.00     (10,000.00)
   (64,000.00)     525,000.00
Beginning Property, plant and equipment (net)     325,000.00
Acquired     200,000.00
Cost of Equipment Sold     (70,000.00)
    455,000.00
Ending Property, plant and equipment (net)     479,000.00
Depreciation        60,000.00
Ending Property, plant and equipment (Gross)     539,000.00
Property, plant and equipment Purchased     (84,000.00)


Dear Student,

Best effort has been made to give quality and correct answer. But if you find any issues please comment your concern. I will definitely resolve your query.

Also please give your positive rating.

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Fantasy Corp. Statement of financial position As at December 31 20X4 20X3 Cash $ 43,000 $...
Fantasy Corp. Statement of financial position As at December 31 20X4 20X3 Cash $ 43,000 $ 28,000 Accounts receivable 117,000 104,000 Inventory 59,000 64,000 Prepaid expenses 8,000 6,000 Investment in financial assets at amortized cost 44,000 42,000 Investment in associate 260,000 224,000 Property, plant and equipment (net) 479,000 325,000 Land 200,000 200,000 $ 1,210,000 $ 993,000 Accounts payable $ 30,000 $ 20,000 Income taxes payable 4,000 7,000 Dividends payable 16,000 13,000 Other current liabilities 68,000 54,000 Finance lease 200,000 0...
CAROLINA CORPORATION Comparative Statements of Financial Position December 31 2014 2013 Cash ..................................................... $ 43,000 $...
CAROLINA CORPORATION Comparative Statements of Financial Position December 31 2014 2013 Cash ..................................................... $ 43,000 $ 24,000 Accounts receivable, net .......................... 35,000 38,000 Inventory ............................................... 114,000 82,000 Land ...................................................... 120,000 190,000 Building ................................................. 200,000 200,000 Accumulated depreciation ......................... (50,000) (40,000) Equipment ............................................. 1,030,000 600,000 Accumulated depreciation ......................... (118,000) (94,000) $1,374,000 $1,000,000 Accounts payable .................................... $ 115,000 $ 100,000 4% Bonds payable .................................. 320,000 -0- Common shares ...................................... 750,000 750,000 Retained earnings ................................... 189,000 150,000 $1,374,000 $1,000,000 Additional data: 1. Net...
Denton Corp.’s statement of financial position accounts as at 31 December 20X4 and 20X5 and information relating to 20X5 activities are presented below.
Denton Corp.’s statement of financial position accounts as at 31 December 20X4 and 20X5 and information relating to 20X5 activities are presented below. Information relating to 20X5 activities:• Net earnings for 20X5 were $690,000.• Cash dividends were declared and paid in 20X5.• Equipment costing $400,000 and having a net book value of $150,000 was sold for $150,000.• A long-term investment was sold for $135,000. There were no other transactions affecting long-term investments in the year.• Short-term investments consist of treasury...
TEXAS CORPORATION Comparative Statements of Financial Position December 31 2,014 2,013 Cash 43,000 24,000 Accounts Receivable,...
TEXAS CORPORATION Comparative Statements of Financial Position December 31 2,014 2,013 Cash 43,000 24,000 Accounts Receivable, net 35,000 38,000 Inventory 114,000 82,000 Land 120,000 190,000 Building 200,000 200,000 Accumulated Depreciation -50,000 -40,000 Equipment 1,030,000 600,000 Accumulated Depreciation -118,000 -94,000 1,374,000 1,000,000 Accounts Payable (merch only) 115,000 100,000 Salaries Payable 20,000 0 4% Bonds Payable 300,000 0 Common Shares 750,000 750,000 Retained Earnings 189,000 150,000 1,374,000 1,000,000 TEXAS CORPORATION Income Statement for year end Dec 31, 2014 Sales 1,075,000 Cost of...
WALLIS CORPORATION Statement of Financial Position As at December 31, 2014 Assets 2014 2013 Cash $88,600...
WALLIS CORPORATION Statement of Financial Position As at December 31, 2014 Assets 2014 2013 Cash $88,600 $49,100 Accounts receivable 85,000 59,400 Prepaid insurance 70,000 60,000    Total current assets 243,600 168,500 Property, equipment and vehicles 360,000 305,000 Accumulated depreciation -110,400 -105,900    Total non-current assets 249,600 199,100 Total Assets $493,200 $367,600 Liabilities and Shareholders' Equity Accounts payable $21,500 $18,600 Wages Payable 3,000 4,000    Total current liabilities 24,500 22,600 Bank loan payable 50,000 60,000    Total liabilities 74,500 82,600 Common...
ASTRO Inc. Statement of Financial Position December 31, 2018             Assets                    
ASTRO Inc. Statement of Financial Position December 31, 2018             Assets                                                              Liabilities Cash                                      $259,000           Notes Payable 8%             $60,000 Inventory                                $6,000           Accounts Payable              $40,000 Prepaid Insurance                $3,000                      Total                                  $100,000 Supplies                                  $4,000           Common Stock $5 par   $140,000 Land                                       $6,000           Excess of par                      $60,000 Building        $480,000                                  Retained earnings           $418,000 Acc. Depr. ( $40,000)       $440,000                       Total                                    $618,000 Total Assets                         $718,000           Total Liabilities & Equity            $718,000 You are asked to prepare, in good financial form, a set...
The statement of financial position of Delacosta Corporation as at December 31, 2020, is as follows:...
The statement of financial position of Delacosta Corporation as at December 31, 2020, is as follows: DELACOSTA CORPORATION Statement of Financial Position December 31, 2020 Assets Goodwill (Note 1) $70,000 Buildings (Note 2) 1,640,000 Inventory 312,100 Investments—trading (Note 3) 100,000 Land 950,000 Accounts receivable 170,000 Investments in shares (FV-OCI) (Note 4) 87,000 Cash 175,900 Assets allocated to trustee for plant expansion Cash 120,000 Treasury notes, at cost and fair value 138,000 $3,763,000 Equities Notes payable (Note 4) $600,000 Common shares,...
ASTRO Inc. Statement of Financial Position December 31, 2018             Assets                    
ASTRO Inc. Statement of Financial Position December 31, 2018             Assets                                                              Liabilities Cash                                      $259,000           Notes Payable 8%             $60,000 Inventory                                $6,000           Accounts Payable              $40,000 Prepaid Insurance                $3,000                      Total                                  $100,000 Supplies                                  $4,000           Common Stock $5 par   $140,000 Land                                       $6,000           Excess of par                      $60,000 Building        $480,000                                  Retained earnings           $418,000 Acc. Depr. ( $40,000)       $440,000                       Total                                    $618,000 Total Assets                         $718,000           Total Liabilities & Equity            $718,000 You are asked to prepare, in good financial form, a set...
The statement of financial position of Dai Sing Ltd as at 31 December 2016 showed a...
The statement of financial position of Dai Sing Ltd as at 31 December 2016 showed a balance in Accounts Receivable of $1,753,800, and a credit balance in Allowance for Doubtful Accounts of $210,456. During the financial year ended 31 December 2017, the following transactions occurred: sales on account $5,566,300; sales returns $340,000; collections from customers $5,072,800; accounts written off $209,000; discount allowed $8,800; and collection of previously written off accounts of $57,000. Required a      ‘The direct write-off method of accounting...
On 31 December 20X7, a company has the following bond on the statement of financial position:...
On 31 December 20X7, a company has the following bond on the statement of financial position:   Bond payable, 7%, interest due semi-annually on 31 Dec.         and 30 June; maturity date, 30 June 20X11 $ 8,200,000       Premium on bonds payable 68,880     $ 8,268,880     On 28 February 20X8, 20% of the bond was retired for $1,804,000 plus accrued interest to 28 February. Interest was paid on this date only for the portion of the bonds that were retired. Premium amortization was recorded...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT