Eastwood Inc.

Statement of Financial Position

December 31, 2023
Assets
Current assets
Cash
Accounts receivable $ 163,500.00
Less allowance for expected credit losses -$ 8,700.00
Inventory—at lower of FIFO cost or NRV $ 208,500.00
Prepaid insurance
Total current assets

Long-term investment
FV – OCI investments, of which investments carried
at $120,000 have been pledged as security for notes
payable to the bank $ 339,000.00
Property, plant and equipment
Land
Building under construction
Equipment $ 400,000.00
Less accumulated depreciation -$ 240,000.00
Intangible assets
Patents $ 40,000.00
Less accumulated amortization -$ 4,000.00
Total assets

Liabilities and Shareholders' Equity

Current liabilities
Notes payable to bank, secured by FV-OCI
investments with carrying amount $120,000
Accounts payable
Income tax payable
Total current liabilities

Long-term liabilities
Bonds payable, $200,000, 7%, due January 1, 2035
Total liabilities

Shareholders equity
Common shares; unlimited shares authorized,
500,000 shares issued and outstanding
Retained earnings $ 138,000.00
Accumulated other comprehensive income $ 45,000.00
Total liabilities and shareholders’ equity

Side calculations
Dr COGS $ 6,500.00
Cr. Inventory $ 6,500.00

Dr. FV-OCI investment $ 39,000.00

Cr. Unrealized gain -OCI $ 39,000.00
$ 41,000.00
$ 154,800.00

$ 202,000.00
$ 5,900.00
$ 403,700.00

$ 378,000.00

$ 85,000.00
$ 124,000.00

$ 160,000.00

$ 36,000.00
$ 1,186,700.00

$ 94,000.00 ( no more info so focus on trial balance)

$ 148,000.00
$ 49,200.00
$ 291,200.00

$ 180,000.00 only when the bond issue at face value

$ 471,200.00
$ 500,000.00
$ 131,500.00
$ 84,000.00
$ 1,186,700.00

affect NI affect RE

affect OCI affect AOCI

current asset + non current asset = current liability + non current liability + SC + RE
Rev & Exp

Cash flow from operating ( Direct )

Cash collected from customer
$ 368,150.00 $ 58,000.00 $ 51,000.00 $ 361,150.00
Cash paid to supplier
$ 195,000.00 $ 60,000.00 $ 40,000.00 $ 46,000.00 $ 40,000.00 $ 169,000.00
sold -$ 169,000.00
purchased
paid
Cash paid for operation
$ 120,000.00 $ 24,000.00 $ 5,000.00 $ 4,000.00 $ 97,000.00
-$ 97,000.00
Cash paid for interest -$ 11,400.00
Cash paid for income tax -$ 23,000.00
Cash provided by operating activities $ 60,750.00

Cash flow from investing

Proceeds from sale of equip.
$ 20,000.00 $ 20,000.00 70% $ 2,000.00 $ 8,000.00
Equipment beg + purchase - sold = equip end
$ 130,000.00 $ 44,000.00 $ 20,000.00 $ 154,000.00
Cash paid for new equipment -$ 44,000.00
Cash used by investing activities -$ 36,000.00
Acc. Dep Begin + Dep. Exp. - Acc. Dep. Of Equip sold = Acc Dep. End
$ 25,000.00 $ 24,000.00 $ 14,000.00 $ 35,000.00

Cash flow from financing

Repayment of bank loan 69000 - 60000 -$ 9,000.00
Payment of dividend -$ 12,000.00
Cash used by financing activities -$ 21,000.00

Net cash flow (2023) $ 3,750.00

Cash Jan 1, 2023 $ 53,850.00
Cash Dec 31, 2023 $ 57,600.00
STI = short term investment

Cash flow from operating ( Indirect )

Net income $ 22,750.00
Add: Dep. Exp $ 24,000.00 ( non -cash )
Less: gain on disposal -$ 2,000.00
Less : incr. AR -$ 7,000.00
Add: decr. Inventory $ 20,000.00
Less: inc. prepaid rent -$ 1,000.00
Add: incr. AP $ 6,000.00
Less: decr. income tax payable -$ 2,000.00
Cash provided by operating activities $ 60,750.00
( non -cash )