A comparative balance sheet for Sleeping Dog Corporation is presented below: Additional information:
1. Loss for 2021 is $ 20,000.
2. Cash dividends of $ 4,000 were declared and paid in 2021.
3. Land was sold for cash at a loss of $ 10,000. This was the only land transaction during the year.
4. Equipment with a cost of $ 15,000 and accumulated depreciation of $ 10,000 was sold for $ 5,000 cash.
5. $ 12,000 of bonds were retired during the year at carrying value.
6. Equipment was acquired for common shares. The fair value of the equipment at the time of the exchange was $ 25,000.
Instructions
Prepare a cash flow statement for the year ended 2021, using the indirect method.

Question

A comparative balance sheet for Sleeping Dog Corporation is presented below:  Additional information:
1. Loss for 2021 is $ 20,000.
2. Cash dividends of $ 4,000 were declared and paid in 2021.
3. Land was sold for cash at a loss of $ 10,000. This was the only land transaction during the year.
4. Equipment with a cost of $ 15,000 and accumulated depreciation of $ 10,000 was sold for $ 5,000 cash.
5. $ 12,000 of bonds were retired during the year at carrying value.
6. Equipment was acquired for common shares. The fair value of the equipment at the time of the exchange was $ 25,000.
Instructions
Prepare a cash flow statement for the year ended 2021, using the indirect method.

Quizplus · Accepted Answer

The Answer of A comparative balance sheet for Sleeping Dog Corporation is presented below:  Additional information:
1. Loss for 2021 is $ 20,000.
2. Cash dividends of $ 4,000 were declared and paid in 2021.
3. Land was sold for cash at a loss of $ 10,000. This was the only land transaction during the year.
4. Equipment with a cost of $ 15,000 and accumulated depreciation of $ 10,000 was sold for $ 5,000 cash.
5. $ 12,000 of bonds were retired during the year at carrying value.
6. Equipment was acquired for common shares. The fair value of the equipment at the time of the exchange was $ 25,000.
Instructions
Prepare a cash flow statement for the year ended 2021, using the indirect method.

A Comparative Balance Sheet for Sleeping Dog Corporation Is Presented