Use the following information to answer questions 1 and 2. Islanders...
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Accounting
Use the following information to answer questions 1 and 2.
Islanders Inc.
Statement of financial position
As at December 31
20X3
20X2
Accounts receivable
$160,000
$110,000
Inventory
62,000
50,000
Prepaid expenses
3,000
4,000
Investments at FVPL
18,000
40,000
Investments at FVOCI
18,000
13,000
Property, plant and equipment (net)
80,000
100,000
Land
180,000
94,000
$521,000
$411,000
Bank overdraft
$9,000
$32,000
Accounts payable
30,000
20,000
Other current liabilities
45,000
60,000
Bank loans
37,000
50,000
Bonds payable
200,000
100,000
Share capital
30,000
10,000
Retained earnings
159,000
133,000
Reserves (AOCI)
11,000
6,000
$521,000
$411,000
Islanders Inc.
Statement of comprehensive income
Year ended December 31
20X3
Sales
$555,000
Depreciation expense
20,000
Interest expense
4,000
Other expenses
380,000
Operating income
$151,000
Gain on sale of land
5,000
Loss on disposition of investment at FVPL
(2,000)
Net income before income tax expense
$154,000
Income tax expense
24,000
Net income
$130,000
Other comprehensive income
5,000
Comprehensive income
$135,000
Additional information:
In 20X3, Islanders Inc. issued $100,000 in bonds to acquire land having a fair value of
$100,000.
a. What is the amount that Islanders Inc. will report as cash from investing activities on its statement of cash flows for its year ended December 31, 20X3?
b. What is the amount that Islanders Inc. will report as cash from financing activities on its statement of cash flows for its year ended December 31, 20X3?
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