In: Accounting
Nash Inc. Statement of Financial Position As at April 30 |
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Assets | 2020 | 2019 | ||||||
Cash | 208,000 | 149,000 | ||||||
Accounts receivable | 115,000 | 94,000 | ||||||
Inventory | 112,000 | 247,000 | ||||||
Prepaid operating expenses | 22,000 | 13,000 | ||||||
Long term investments | 186,000 | 83,000 | ||||||
Equipment | 1,244,000 | 1,162,000 | ||||||
Less: Accumulated depreciation | (369,000 | ) | (377,000 | ) | ||||
1,518,000 | 1,371,000 | |||||||
Liabilities and Shareholders' Equity | ||||||||
Accounts payable | 52,000 | 66,000 | ||||||
Income tax payable | 26,000 | 25,000 | ||||||
Bonds payable | 676,000 | 765,000 | ||||||
Common shares | 290,000 | 249,000 | ||||||
Retained earnings | 474,000 | 266,000 | ||||||
1,518,000 | 1,371,000 |
Nash Inc. Income Statement For the year ended April 30, 2020 |
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Sales revenue | 1,144,000 | |
Cost of goods sold | 685,000 | |
Gross profit | 459,000 | |
Operating expenses | 225,000 | |
Income from operations | 234,000 | |
Interest expense | 4,900 | |
Gain on disposal of equipment | 3,700 | |
Income before income tax | 232,800 | |
Income tax expense | 18,650 | |
Net income | $214,150 |
ADDITIONAL INFORMATION:
● | Depreciation expense is included in “operating expenses.” All accounts payable transactions were related to the purchase of inventory. | |
● | During the year, a piece of equipment that originally cost $53,100 was sold for cash. The equipment was 70% depreciated at the time of the sale. | |
● | Long-term investments were purchased for cash during the year. |
Prepare a statement of cash flows, in good form, for Nash Inc.,
using the direct method. Nash Inc. follows ASPE. (Show
amounts that decrease cash flow with either a - sign e.g. -15,000
or in parenthesis e.g. (15,000).)