Question - Financial statements for E-Perform, Inc. follow:
E-PERFORM, INC.
Statement of Financial Position
December 31 |
| Assets |
2012 |
2011 |
| Cash |
$97,070 |
$48,450 |
| Trading investments |
129,350 |
116,890 |
| Accounts receivable |
74,670 |
44,680 |
| Inventories |
122,880 |
92,070 |
| Prepaid expenses |
18,130 |
26,790 |
| Property, plant, and equipment |
269,750 |
242,750 |
| Accumulated depreciation |
(50,890) |
|
(53,700 |
) |
| Total assets |
$660,960 |
|
$517,930 |
|
| Liabilities and Shareholders' Equity |
| Accounts payable |
$93,170 |
$77,870 |
| Accrued liabilities |
12,220 |
6,790 |
| Bank loan payable |
104,160 |
153,540 |
| Common shares |
201,520 |
174,950 |
| Retained earnings |
249,890 |
|
104,780 |
|
| Total liabilities and shareholders' equity |
$660,960 |
|
$517,930 |
|
E-PERFORM, INC.
Income Statement
Year Ended December 31, 2012 |
Sales
|
$491,820 |
Cost of goods sold
|
185,450 |
Gross profit
|
306,370 |
Operating expenses
|
116,540 |
Profit from operations
|
189,830 |
Other revenues and expenses
|
Unrealized gain on trading investments
|
$12,460 |
Interest expense
|
(4,170 |
) |
8,290 |
Profit before income tax
|
198,120 |
Income tax expense
|
45,540 |
Profit
|
$152,580 |
Additional information:
| 1. |
Prepaid expenses and accrued liabilities relate to operating expenses.
|
| 2. |
An unrealized gain on trading investments of $12,460 was recorded.
|
| 3. |
New equipment costing $84,630 was purchased for $25,480 cash and a $59,150 long-term bank loan payable.
|
| 4. |
Old equipment having an original cost of $57,630 was sold for $1,410.
|
| 5. |
Accounts payable relate to merchandise creditors.
|
| 6. |
Some of the bank loan was repaid during the year.
|
| 7. |
A dividend was paid during the year.
|
| 8. |
Operating expenses include $45,710 of depreciation expense and a $7,700 loss on disposal of equipment.
|
Prepare the statement of cash flows, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)