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Kaminsky Ltd Statement of Financial Position As at December 31, 2020 2020 2019 Assets $ 24,700 S 188,500 (15,000) Cash 41,750 Accounts receivable Allowance for doubtful accounts 181,400 (16,500) 200,000 FVTOCI investments FVTPL investments 260,000 60,000 80,000 Inventory 184,000 161,000 16,000 18,000 S 720,200 S 665,650 400,000 1650,000 650,000 $ 1.400,000 $ 1,050,000 $ 2.120.200 S 1,715,650 Prepaid insurance Land 150,000 1480,000 580.000 Buildings and equipment Accumulated depreciation Liabilities and Shareholders' Equity Short-term bank loan 22,000 s000 Accounts payable 103,600 119,300 Unearmed revenues Tax payable Dividends payable 20,400 16,600 16,750 19,900 25,000 S 187,250 S 186,300 $ 800,000S 30.000 Common shares 800,000 Retained earnings AOC- FVTOCI investments 1,124,950 747,350 8,000 1,932,950 S 2,120.200 S 1,715,650 -18.000 1,529.350 Kaminsky Ltd Statement of income for the Year Ended December 31, 2020 $ 3,350,000 1.340,000 Revenue Cost of Goods Sold Gross margin Operating expenses Bad debt expense 2,010,000 717,000 4,100 44,500 Interest expense Tax expense Gain on sale of equipment FV adjustment on FVTPL investments Gain on sale of FVTPL investments 311,100 17,000 4900 7,500 Net income $ 62,700 15,400 978.100 OC-FVTOC investments Comprehensive income

Kaminsky Ltd Statement of Financial Position As at December 31, 2020 2020 2019 Assets $ 24,700 S 188,500 (15,000) Cash 41,750 Accounts receivable Allowance for doubtful accounts 181,400 (16,500) 200,000 FVTOCI investments FVTPL investments 260,000 60,000 80,000 Inventory 184,000 161,000 16,000 18,000 S 720,200 S 665,650 400,000 1650,000 650,000 $ 1.400,000 $ 1,050,000 $ 2.120.200 S 1,715,650 Prepaid insurance Land 150,000 1480,000 580.000 Buildings and equipment Accumulated depreciation Liabilities and Shareholders' Equity Short-term bank loan 22,000 s000 Accounts payable 103,600 119,300 Unearmed revenues Tax payable Dividends payable 20,400 16,600 16,750 19,900 25,000 S 187,250 S 186,300 $ 800,000S 30.000 Common shares 800,000 Retained earnings AOC- FVTOCI investments 1,124,950 747,350 8,000 1,932,950 S 2,120.200 S 1,715,650 -18.000 1,529.350 Kaminsky Ltd Statement of income for the Year Ended December 31, 2020 $ 3,350,000 1.340,000 Revenue Cost of Goods Sold Gross margin Operating expenses Bad debt expense 2,010,000 717,000 4,100 44,500 Interest expense Tax expense Gain on sale of equipment FV adjustment on FVTPL investments Gain on sale of FVTPL investments 311,100 17,000 4900 7,500 Net income $ 62,700 15,400 978.100 OC-FVTOC investments Comprehensive income

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 17E
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The following is the Statement of Financial Position and the Statement of Income for Kaminsky Ltd. Kaminsky Ltd Statement of Financial Position As at December 31, 2020 2020 2019 Assets Cash 24,700 $ 41,750 Accounts receivable 188,500 183,400 Allowance for doubtful accounts (15,000) (16,500) FVTOCI investments 260,000 200,000 FVTPL investments 60,000 80,000 Inventory Prepaid insurance 184,000 161,000 18,000 16.000 665,650 150,000 1,480,000 -580,000 S 1,400,000 $ 1,050,000 $ 2,120,200 $ 1,715,650 $ 720,200 $ Land 400,000 Buildings and equipment Accumulated depreciation 1,650,000 -650,000 Liabilities and Shareholders' Equity Short-term bank loan 22,000 5000 103,600 16,750 Accounts payable Unearned revenues Тах рayable Dividends payable 119,300 20,400 19,900 25,000 16,600 30,000 $ 187,250 S $ 800,000 $ 1,124,950 186,300 Common shares 800,000 Retained earnings 747,350 -18,000 1,529,350 $ 2,120,200 $ 1,715,650 AOC- FVTOCI investments 8,000 1,932,950 Kaminsky Ltd Statement of Income for the Year Ended December 31, 2020 $ 3,350,000 1,340,000 Revenue Cost of Goods Sold Gross margin Operating expenses 2,010,000 717,000 Bad debt expense Interest expense 4,100 44,500 Тах ехpense 311,100 Gain on sale of equipment 17,000 FV adjustment on FVTPL investments 4,900 7,500 962,700 Gain on sale of FVTPL investments Net income OCI- FVTOCI investments Comprehensive income 15,400 978,100
Transcribed Image Text:The following is the Statement of Financial Position and the Statement of Income for Kaminsky Ltd. Kaminsky Ltd Statement of Financial Position As at December 31, 2020 2020 2019 Assets Cash 24,700 $ 41,750 Accounts receivable 188,500 183,400 Allowance for doubtful accounts (15,000) (16,500) FVTOCI investments 260,000 200,000 FVTPL investments 60,000 80,000 Inventory Prepaid insurance 184,000 161,000 18,000 16.000 665,650 150,000 1,480,000 -580,000 S 1,400,000 $ 1,050,000 $ 2,120,200 $ 1,715,650 $ 720,200 $ Land 400,000 Buildings and equipment Accumulated depreciation 1,650,000 -650,000 Liabilities and Shareholders' Equity Short-term bank loan 22,000 5000 103,600 16,750 Accounts payable Unearned revenues Тах рayable Dividends payable 119,300 20,400 19,900 25,000 16,600 30,000 $ 187,250 S $ 800,000 $ 1,124,950 186,300 Common shares 800,000 Retained earnings 747,350 -18,000 1,529,350 $ 2,120,200 $ 1,715,650 AOC- FVTOCI investments 8,000 1,932,950 Kaminsky Ltd Statement of Income for the Year Ended December 31, 2020 $ 3,350,000 1,340,000 Revenue Cost of Goods Sold Gross margin Operating expenses 2,010,000 717,000 Bad debt expense Interest expense 4,100 44,500 Тах ехpense 311,100 Gain on sale of equipment 17,000 FV adjustment on FVTPL investments 4,900 7,500 962,700 Gain on sale of FVTPL investments Net income OCI- FVTOCI investments Comprehensive income 15,400 978,100
Additional information 1. Depreciation expense of $182,000 is included in operating expenses. 2. The company acquired equipment during the year. 3. The company sold equipment for proceeds of $65,000. The asset was 70% depreciated at the time of sale. 4. The short-term bank loans are considered cash and cash equivalents. 5. Fair value though profit and loss investments with a carrying value of $70,000 were sold in 2020. 6. FVTOCI investments with an original cost of $48,600 were sold in 2020 for proceeds The investments had a carrying value of $42,000 at the beginning of 2020. $38,000. Required - a. Calculate the cash flow from operations section of the Statement of Cash Flow using the indirect method. b. Calculate cash flow from operations section of the Statement of Cash Flow using the direct method. c. Calculate cash flow from investing activities.
Transcribed Image Text:Additional information 1. Depreciation expense of $182,000 is included in operating expenses. 2. The company acquired equipment during the year. 3. The company sold equipment for proceeds of $65,000. The asset was 70% depreciated at the time of sale. 4. The short-term bank loans are considered cash and cash equivalents. 5. Fair value though profit and loss investments with a carrying value of $70,000 were sold in 2020. 6. FVTOCI investments with an original cost of $48,600 were sold in 2020 for proceeds The investments had a carrying value of $42,000 at the beginning of 2020. $38,000. Required - a. Calculate the cash flow from operations section of the Statement of Cash Flow using the indirect method. b. Calculate cash flow from operations section of the Statement of Cash Flow using the direct method. c. Calculate cash flow from investing activities.
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