Question

IFRS 23-7

Skysong Corporation has contracted with you to prepare a statement of cash flows. The controller has provided the following information.

		December 31
		2017			2016
Buildings		$	–0–		$28,550
Equipment			44,000		19,000
Patents			4,920		6,150
Investments			–0–		2,900
Inventory			10,400		7,800
Accounts receivable			12,150		8,800
Cash			34,580		12,800
		$	106,050		$86,000
Share capital—ordinary		$	42,800		$32,800
Retained earnings			20,650		5,800
Allowance for doubtful accounts			2,900		4,300
Accumulated depreciation on equipment			1,900		4,300
Accumulated depreciation on buildings			–0–		5,800
Accounts payable			5,100		2,900
Dividends payable			–0–		4,900
Long-term notes payable			29,800		21,300
Notes payable, short-term (non-trade)			2,900		3,900
		$	106,050		$86,000

Additional data related to 2017 are as follows.

1.		Equipment that had cost $10,800 and was 40% depreciated at time of disposal was sold for $2,400.
2.		$10,000 of the long-term notes payable was paid by issuing ordinary shares.
3.		Cash dividends paid were $4,900.
4.		On January 1, 2017, the building was completely destroyed by a flood. Insurance proceeds on the building were $30,800.
5.		Equity investments (non-trading) were sold at $1,600 above their cost.
6.		Cash was paid for the acquisition of equipment.
7.		A long-term note for $18,500 was issued for the acquisition of equipment.
8.		Interest of $1,900 and income taxes of $6,800 were paid in cash.

Prepare a statement of cash flows using the indirect method. (If an amount reduces the account balance then enter with negative sign.)

Answer 1

The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.