Chapter 10
The Statement of Cash Flow
527
AP-15B (
2
3
6
)
The balance sheet and income statement for Joe’s Fish Hut are presented below.
Joe's Fish Hut
Balance Sheet
As at December 31, 2016
2016
2015
Assets
Cash
$2,100
$23,000
Accounts Receivable
21,000
12,000
Inventory
21,000
25,000
Total Current Assets
44,100
60,000
Property, Plant and Equipment
Land
100,000
100,000
Equipment
170,000
150,000
Less: Accumulated Depreciation
(28,600)
(25,000)
Total Assets
$285,500
$285,000
Liabilities
Accounts Payable
$23,000
$33,000
Current Portion of Bank Loan
12,000
12,000
Current Liabilities
23,000
33,000
Non-Current Portion of Bank Loan
48,000
60,000
Total Liabilities
71,000
93,000
Shareholders' Equity
Common Shares
20,000
15,000
Retained Earnings
194,500
177,000
Shareholders' Equity
214,500
192,000
Liabilities and Shareholders' Equity
$285,500
$285,000
Joe's Fish Hut
Income Statement
For the Year Ended December 31, 2016
Sales
$161,000
Cost of Goods Sold
112,700
Gross Profit
48,300
Operating Expenses
Depreciation Expense
3,600
Other Operating Expense
19,700
Total Operating Expenses
23,300
Operating Income before Tax
25,000
Income Tax Expense
7,500
Net Income (Loss)
$17,500
