Chapter 10
The Statement of Cash Flow
494
AP-13A (
2
3
6
)
The balance sheet and income statement for Zooyo Appliance are presented below.
Zooyo Appliance
Balance Sheet
As at December 31
2016
2015
Assets
Cash
$37,580
$15,000
Accounts Receivable
17,000
16,000
Inventory
21,000
27,000
Total Current Assets
75,580
58,000
Property, Plant & Equipment
Land
110,000
80,000
Equipment
130,000
160,000
Less: Accumulated Depreciation
(26,500)
(30,000)
Total Assets
$289,080
$268,000
Liabilities
Accounts Payable
$29,000
$35,000
Current Portion of Bank Loan
18,000
18,000
Current Liabilities
47,000
53,000
Non-Current Portion of Bank Loan
80,000
65,000
Total Liabilities
127,000
118,000
Shareholders’ Equity
Common Shares
75,000
70,000
Retained Earnings
87,080
80,000
Shareholders’ Equity
162,080
150,000
Liabilities and Shareholders’ Equity
$289,080
$268,000
Zooyo Appliance
Income Statement
For the Year Ended December 31, 2016
Sales
$142,000
Cost of Goods Sold
92,000
Gross Profit
50,000
Expenses
Depreciation Expense
4,500
Other Operating Expenses
17,900
Total Expenses
22,400
Operating Income
27,600
Other Expenses
Loss on Sale of Equipment
(3,200)
Operating Income before Tax
24,400
Income Tax Expense
7,320
Net Income (Loss)
$17,080
