Carla Vista Ltd., a private company reporting under ASPE,reported the following for the years ended May 31, 2021, and2020.
CARLA VISTA LTD.
Balance Sheet
May 31 |
| Assets | | 2021 | | | 2020 | |
| Cash | | $25,100 | | | $46,750 | |
| Accounts receivable | | 88,650 | | | 78,750 | |
| Inventory | | 184,000 | | | 159,750 | |
| Prepaid expenses | | 5,900 | | | 7,400 | |
| Land | | 135,750 | | | 79,500 | |
| Equipment | | 319,000 | | | 199,000 | |
| Accumulated depreciation | | (77,200 | ) | | (39,750 | ) |
| Â Â Â Â Total assets | | $681,200 | | | $531,400 | |
| Liabilities and Shareholders’Equity | | | |
| Accounts payable | | $42,850 | | | $39,750 | |
| Dividends payable | | 7,400 | | | 5,900 | |
| Income taxes payable | | 3,100 | | | 6,900 | |
| Mortgage payable | | 131,000 | | | 79,750 | |
| Common shares | | 218,500 | | | 165,750 | |
| Retained earnings | | 278,350 | | | 233,350 | |
|     Total liabilities and shareholders’equity | | $681,200 | | | $531,400 | |
| Additional Information: |
| 1. | | Profit for 2021 was $107,750. |
| 2. | | Common shares were issued for $52,750. |
| 3. | | Land with a cost of $52,750 was sold at a loss of $19,900. |
| 4. | | Purchased land with a cost of $109,000 with a $57,750 downpayment and financed the remainder with a mortgage notepayable. |
| 5. | | No equipment was sold during 2021. |
Prepare a cash flow statement for the year using the indirectmethod
