Chapter 10
The Statement of Cash Flow
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AP-11B (
2
)
Flax Corporation’s balance sheet accounts as of December 31, 2016 and 2015 are presented below.
Flax Corp.
Balance Sheet
As at December 31
2016
2015
Assets
Current Assets
Cash
$460,000
$300,000
Short-Term Investments
600,000
-
Accounts Receivable
1,020,000
1,020,000
Inventory
1,360,000
1,200,000
Total Current Assets
3,440,000
2,520,000
Long-Term Assets
Long-Term Investments
400,000
800,000
Equipment
3,100,000
2,500,000
Less: Accumulated Depreciation
(900,000)
(600,000)
Total Long-Term Assets
2,600,000
2,700,000
Total Assets
$6,040,000
$5,220,000
Liabilities
Current Liabilities
$2,300,000
$2,000,000
Non-Current Liabilities
800,000
700,000
Total Liabilities
3,100,000
2,700,000
Shareholders' Equity
Common Shares
1,800,000
1,680,000
Retained Earnings
1,140,000
840,000
Total Shareholders' Equity
2,940,000
2,520,000
Total Liabilities and Equity
$6,040,000
$5,220,000
Assume current liabilities include only items from operations (e.g. accounts payable, taxes
payable). Non-current liabilities include items from financing (e.g. bonds and other non-
current liabilities).
Note that there was no sale of equipment throughout the year.
