Chapter 10
The Statement of Cash Flow
490
AP-12A (
2
6
)
Breakwater Boats sells boating accessories. At the end of 2016, the income statement and
comparative balance sheet were prepared as shown below.
Breakwater Boats
Balance Sheet
As at December 31
2016
2015
Assets
Current Assets
Cash
$73,870
$62,500
Accounts Receivable
94,800
87,500
Inventory
327,000
245,700
Prepaid Expenses
14,500
14,500
Total Current Assets
510,170
410,200
Non-Current Assets
Property, Plant and Equipment
(1)
Land
0
44,000
Equipment
340,000
340,000
Less: Accumulated Depreciation
(26,200)
(24,500)
Total Non-Current Assets
313,800
359,500
Total Assets
$823,970
$769,700
Liabilities and Equity
Liabilities
Current Liabilities
Accounts Payable
$52,600
$45,700
Current Portion of Bank Loan
8,500
8,500
Total Current Liabilities
61,100
54,200
Non-Current Portion of Bank Loan
50,100
58,600
Total Liabilities
111,200
112,800
Shareholders' Equity
Common Shares
150,000
150,000
Retained Earnings
562,770
506,900
Total Shareholders' Equity
712,770
656,900
Total Liabilities and Equity
$823,970
$769,700
1
Property, Plant & Equipment
During 2016, land was sold for a gain of $6,000. There was no purchase of equipment
throughout the year.
