The balance sheet and income statement for Victoria Hotels are presented below. Victoria...
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Accounting
The balance sheet and income statement for Victoria Hotels are presented below.
Victoria HotelsBalance SheetAs at December 31
2020
2019
Assets
Current Assets
Cash
$112,455
$77,500
Accounts Receivable
$46,000
$29,100
Inventory
$79,000
$44,200
Total Current Assets
$237,455
$150,800
Land
$96,000
$101,000
Equipment
$96,000
$135,000
Accumulated Depreciation
$-51,000
$-66,000
Total Assets
$378,455
$320,800
Liabilities and Equity
Liabilities
Current Liabilities
Accounts Payable
$36,900
$66,700
Taxes Payable
$23,700
$23,700
Total Current Liabilities
$60,600
$90,400
Notes Payable
$126,000
$89,900
Total Liabilities
$186,600
$180,300
Shareholders' Equity
Common Shares
$74,100
$68,100
Retained Earnings
$117,755
$72,400
Total Shareholders' Equity
$191,855
$140,500
Total Liabilities and Equity
$378,455
$320,800
Notes: The company paid cash dividends during 2020.
The company did not make a notes payable payment during 2020.
The company did not purchase any equipment during 2020.
The company did not purchase any land during 2020.
Victoria HotelsIncome StatementFor the Year Ended December 31, 2020
Revenue
$409,000
Cost of Sales
$265,850
Gross Profit
$143,150
Operating Expenses
Depreciation Expense
$6,000
Other Operating Expenses
$28,500
Total Operating Expenses
$34,500
Income from Operations
$108,650
Other Income and Expenses
Interest Expense
$-6,200
Loss on Sale of Equipment
$-8,000
Gain on Sale of Land
$5,200
Operating Income before Tax
$99,650
Income Tax
$29,895
Net Income (Loss)
$69,755
Prepare the cash flow statement for December 31, 2020 using the indirect method.
Do not enter dollar signs or commas in the input boxes. Use the negative sign for a decrease in cash.
Victoria HotelsCash Flow StatementFor the Year Ended December 31, 2020
Cash Flow from Operating Activities
Net Income
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Adjustments for Non-Cash Items
Depreciation Expense
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Loss on Sale of Equipment
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Gain on Sale of Land
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Changes in Current Assets and Current Liabilities
Increase in Accounts Receivable
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Increase in Inventory
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Decrease in Accounts Payable
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Change in Cash Due to Operating Activities
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Cash Flow from Investing Activities
Sale of Equipment
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Sale of Land
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Net Cash Provided (Used) by Investing Activities
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Cash Flow from Financing Activities
Issuance of Common Shares
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Proceeds from Notes Payable
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Payment of Dividends
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Net Cash Provided (Used) by Financing Activities
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Net increase (decrease) in cash
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Cash at the Beginning of the Year
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Cash at the End of the Year
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DC Hotel's net income for the year ended October 31, 2020 was $137,000. Additional data for the year is provided below.
Purchase of property and equipment
$256,000
Depreciation of property and equipment
$17,200
Dividends declared
$57,000
Decrease in beverage inventory
$23,000
Loss on sale of equipment
$14,000
Issue of common shares
$13,300
Calculate the net cash provided (used) by operating activities using the indirect method.
Do not enter dollar signs or commas in the input boxes. Use the negative sign for a decrease in cash. Increase or decrease in cash from operating activities =$
Norway Hotel had net income for 2020 of $130,000. Included in net income was depreciation of $2,400, a gain on sale of land of $6,800, loss on sale of equipment of $9,000 and income taxes of $28,400. Using the information given, calculate the net cash provided (used) by operating activities using the indirect method. Assume that the balances of current assets (except cash) and current liabilities remain the same as last year.
Do not enter dollar signs or commas in the input boxes. Use the negative sign for a decrease in cash.
Net cash provided (used) by operating activities = .
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