Chapter 10
The Statement of Cash Flow
516
AP-12B (
2
6
)
Vortex Manufacturing makes and sells integrated circuit boards. At the end of 2016, the
income statement and comparative balance sheet were prepared as shown below.
Vortex Manufacturing
Balance Sheet
As at December 31
2016
2015
Assets
Current Assets
Cash
$239,820
$135,640
Accounts Receivable
242,100
265,300
Inventory
503,200
465,300
Prepaid Expenses
26,500
26,500
Total Current Assets
1,011,620
892,740
Non-Current Assets
Property, Plant and Equipment
(1)
Land
0
16,000
Equipment
840,400
840,400
Less: Accumulated Depreciation
(102,300)
(95,600)
Total Non-Current Assets
738,100
760,800
Total Assets
$1,749,720
$1,653,540
Liabilities and Equity
Liabilities
Current Liabilities
Accounts Payable
$305,600
$324,500
Current Portion of Bank Loan
32,000
23,000
Total Current Liabilities
337,600
347,500
Non-Current Portion of Bank Loan
205,000
185,000
Total Liabilities
542,600
532,500
Shareholders' Equity
Common Shares
290,000
260,000
Retained Earnings
917,120
861,040
Total Shareholders' Equity
1,207,120
1,121,040
Total Liabilities and Equity
$1,749,720
$1,653,540
1
Property, Plant & Equipment
During 2016, land was sold for a loss of $5,000. There was no purchase of equipment
throughout the year.
The company did not pay off any amount of the bank loan.
