Prepare the Statement of Cash Flows for Renoir Art Gallery Ltd for the year ended December 31,2018 using the indirect method from the following income statement,comparative balance sheets and supplemental information:
Renoir Art Gallery Ltd.
Income Statement
For the Year Ended
December 31,2018
Renoir Art Gallery Ltd.
Comparative Balance Sheet
As at December 31,2018
Supplemental information:
- The decrease in bonds payable is due entirely to the amortization of the related premium.
- Renoir's policy is to report interest and dividends paid as a cash outflow from operating activities.
- The held-for-trading investments do not meet the criteria for cash equivalents.
- $10,000 of held-for-trading investments were purchased during the year; none were sold.
• Property,plant,and equipment costing $670,000 was sold for $422,000.
• 100,000 ordinary shares (valued at $550,000)were exchanged as part of the acquisition cost of new property,plant,and equipment.The balance was paid in cash.
• The $212,000 cost of successfully suing a competitor for patent infringement was capitalized during the year.
• "Other Expenses" includes gains and losses on asset sales,holding losses,and patent amortization.
• Cash was received or paid for all revenues and expenses other than those relating to inventories,sales,depreciation,and amortization.
• Income from discontinued operations represents the operating profits of a plant that is in the process of being decommissioned.The recorded profit was received in cash.
Required:
1.Prepare Renoir's statement of cash flows for the year ended December 31,2015 using the indirect method,including disclosure of non-cash activities.

Question

Prepare the Statement of Cash Flows for Renoir Art Gallery Ltd for the year ended December 31,2018 using the indirect method from the following income statement,comparative balance sheets and supplemental information:
Renoir Art Gallery Ltd.
Income Statement
For the Year Ended
December 31,2018
  Renoir Art Gallery Ltd.
Comparative Balance Sheet
As at December 31,2018
  Supplemental information:
- The decrease in bonds payable is due entirely to the amortization of the related premium.
- Renoir's policy is to report interest and dividends paid as a cash outflow from operating activities.
- The held-for-trading investments do not meet the criteria for cash equivalents.
- $10,000 of held-for-trading investments were purchased during the year; none were sold.
• Property,plant,and equipment costing $670,000 was sold for $422,000.
• 100,000 ordinary shares (valued at $550,000)were exchanged as part of the acquisition cost of new property,plant,and equipment.The balance was paid in cash.
• The $212,000 cost of successfully suing a competitor for patent infringement was capitalized during the year.
• "Other Expenses" includes gains and losses on asset sales,holding losses,and patent amortization.
• Cash was received or paid for all revenues and expenses other than those relating to inventories,sales,depreciation,and amortization.
• Income from discontinued operations represents the operating profits of a plant that is in the process of being decommissioned.The recorded profit was received in cash.
Required:
1.Prepare Renoir's statement of cash flows for the year ended December 31,2015 using the indirect method,including disclosure of non-cash activities.

Quizplus · Accepted Answer

The Answer of Prepare the Statement of Cash Flows for Renoir Art Gallery Ltd for the year ended December 31,2018 using the indirect method from the following income statement,comparative balance sheets and supplemental information:
Renoir Art Gallery Ltd.
Income Statement
For the Year Ended
December 31,2018
  Renoir Art Gallery Ltd.
Comparative Balance Sheet
As at December 31,2018
  Supplemental information:
- The decrease in bonds payable is due entirely to the amortization of the related premium.
- Renoir's policy is to report interest and dividends paid as a cash outflow from operating activities.
- The held-for-trading investments do not meet the criteria for cash equivalents.
- $10,000 of held-for-trading investments were purchased during the year; none were sold.
• Property,plant,and equipment costing $670,000 was sold for $422,000.
• 100,000 ordinary shares (valued at $550,000)were exchanged as part of the acquisition cost of new property,plant,and equipment.The balance was paid in cash.
• The $212,000 cost of successfully suing a competitor for patent infringement was capitalized during the year.
• "Other Expenses" includes gains and losses on asset sales,holding losses,and patent amortization.
• Cash was received or paid for all revenues and expenses other than those relating to inventories,sales,depreciation,and amortization.
• Income from discontinued operations represents the operating profits of a plant that is in the process of being decommissioned.The recorded profit was received in cash.
Required:
1.Prepare Renoir's statement of cash flows for the year ended December 31,2015 using the indirect method,including disclosure of non-cash activities.