Gold Inc.

Statement of Cash Flows

For the year ended December 31, 2017

Cash flows from operating activities:

Net Earnings
+ Depreciation expense
- Gain on sale of equipment
+ Decrease in Accounts Receivable
+ Decrease in Inventory
- Decrease in Trade Payables
Net Cash flow from operating activities

Cash flows from investing activities:

Sale of equipment
Purchase of Equipment
Purchase of Land
Net Cash flow from investing activities

Cash flows from financing activities:

Issuance of long-term notes payable
Payment of cash dividends
Net Cash flow from financing activities

Net Increase in cash and short-term investments

Cash and Short-term investments, beginning of year

Cash and Short-term investments, end of year

NOTES:
(1) Purchase of Equipment
Beginning Balance
- Disposal of Equipment
+ Purchase of equipment with notes payable
+ Purchase of equipment with cash
= Ending Balance
Rearranged: 55000 - 27000 + 20000 - 10000
Purchase of equipment with cash = 38,000

(2) Payment of Dividends

Beginning Balance
+ Net Income
- Dividends
= Ending Balance

Rearranged: 46000 - 27000 -28000

Dividends Paid = 9000
 Inc.
Cash Flows
December 31, 2017

$ 28,000
$ 8,000
$ (2,000)
$ 16,000
$ 9,000
$ (17,000)
$ 42,000

$ 12,000
$ (38,000)
$ (30,000)
$ (56,000)

$ 15,000
$ (9,000)
$ 6,000

$ (8,000)

$ 18,000

$ 10,000

27000
-20000
10000
????
55000
27000
28000
????
46000
 Clark Inc.
Statement of Cash Flows
For the year ended December 31, 2020

Cash flows from operating activities:

Net Earnings
+ Depreciation expense
- Gain on sale of equipment
+ Decrease in Accounts Receivable
+ Decrease in Inventory
+ Increase in Trade Payables
Net Cash flow from operating activities

Cash flows from investing activities:

Sale of equipment
Purchase of Equipment
Net Cash flow from investing activities

Cash flows from financing activities:

Issuance of long-term notes payable
Payment of cash dividends
Net Cash flow from financing activities

Net Increase in cash and short-term investments

Cash and Short-term investments, beginning of year

Cash and Short-term investments, end of year

NOTES:
(1) Sale of Equipment

Gain/(loss) on sale of equipment = Cash Received - Carrying Value

4000 = ???? - (21,000 - 10,000)
4000 = ???? - 11,000
Cash received = 11,000 + 4000
(2) Purchase of Equipment
Beginning Balance
- Disposal of Equipment
+ Purchase of equipment with cash
= Ending Balance

Rearranged: 59000 - 40000 + 21000

Purchase of equipment with cash = 40,000

(3) Payment of Dividends

Current years amount + previous years amount that was owing
Beginning Balance
+ Net Income
- Dividends
= Ending Balance

Rearranged: 45000 + 10000 - 48000

Dividends Paid for this year = 7,000

Dividends owing from last year that were paid this year
Dividneds Payable beginning balance
Ending balance
Cash paid for dividends from previous year

Total dividneds paid = 7,000 + 8,000

 Inc.
Cash Flows
December 31, 2020

$ 10,000
$ 8,000
$ (4,000)
$ 5,000
$ 13,000
$ 6,000
$ 38,000

$ 15,000
$ (40,000)
$ (25,000)

$ 9,000
$ (15,000)
$ (6,000)

$ 7,000

$ 20,000

$ 27,000

Received - Carrying Value

 40000
-21000
????
59000

amount that was owing

45000
10000
????
48000

id this year
10000
2000
8000
 1-Jul Horses
Common Shares - Sandy
Cash
Common Shares - Sarah

1-Jul Prepaid Expenses

Cash

1-Jul Supplies
Cash

1-Aug Cash
Deferred Revenue

1-Oct Equipment
Notes Payable - Short term

3-Dec Accounts Receivable

Sales Revenue

31-Dec Supplies Expense

Supplies

ADJUSTING ENTRIES
31-Dec Bad Debt Expense
Allowance for Doubtful Accounts

31-Dec Depreciation Expense

Accumulated Depreciation - Horse

31-Dec Depreciation Expense

Accumulated Depreciation - Equipment

31-Dec Deferred Revenue

Sales Revenue

31-Dec Interest Expense

Interest Payable

31-Dec Rent Expense

Prepaid Expenses
 30,000 Horses 30,000
30,000 Cash 30,000
30,000 Common Shares 60,000
30,000

14,400
14,400

6000
6000

18000
18000

16000
16000

5000
5000

4000
4000

NG ENTRIES
250
250

3000
3000

750
750

7500
7500

400
400

7200
7200
Facevalue $ 100,000,000
Coupon Rate 8.1%
Market Rate 8.0%
Term (in years) 10
Payable Semi-annual
Date of Issue 1-Jan
Fiscal year end 31-Dec

COMPUTE ISSUE PRICE OF BONDS

Payment Amount Discount Factor
Lumpsum (Principal) $ 100,000,000 0.4564
Annuity (Coupon Payments) $ 4,050,000 13.5903
TOTAL ISSUE PRICE OF BOND

AMORTIZATION TABLE
Coupon Rate X Facevalue Market Rate X Carr
Date Interest Payment Interest Expense
January 1, X1
June 30, X1 $ 4,050,000 $ 4,027,229
December 31, X1 $ 4,050,000 $ 4,026,318
June 30, X2 $ 4,050,000 $ 4,025,370

JOURNAL ENTRIES
January 1, X1 Cash $ 100,680,715
Premium on Bonds payable
Bonds Payable

June 30, X1 Interst Expense $ 4,027,229

Premium on Bonds Payable $ 22,771
Cash

December 31, X1 Interest Expense $ 4,026,318

Premium on Bonds Payable $ 23,682
Cash

June 30, X2 Interst Expense $ 4,025,370

Premium on Bonds Payable $ 24,630
Cash

HOW BONDS WOULD BE LISTED ON BALANCE SHEET DECEMBER 31, X1

Bonds Payable $ 100,000,000
Plus: Premium on Bonds payable $ 634,261
Bonds Payable Carrying Value $ 100,634,261

HOW BOND INTEREST EXPENSE WOULD BE LISTED ON INCOME STATEMENT DECEMBER 31, X1
Interest Expense $ 8,053,546
 Total
$ 45,640,000
$ 55,040,715
$ 100,680,715

Interest Expense - Intere Previous Carrying Value + Amoritzation

Amoritzation of Bond DisCarrying Value
$ 100,680,715
$ (22,771) $ 100,657,944
$ (23,682) $ 100,634,261
$ (24,630) $ 100,609,632
 $ 680,715
$ 100,000,000

$ 4,050,000

$ 4,050,000

$ 4,050,000

EMBER 31, X1
Facevalue $ 40,000,000
Coupon Rate 5.8%
Market Rate 6.0%
Term (in years) 10
Payable Semi-annual
Date of Issue 1-Mar
Fiscal year end 31-Dec

COMPUTE ISSUE PRICE OF BONDS

Payment Amount Discount Factor Total
Lumpsum (Principal) $ 40,000,000 0.5537 $ 22,148,000
Annuity (Coupon Payments) $ 1,160,000 14.8775 $ 17,257,900
TOTAL ISSUE PRICE OF BOND $ 39,405,900

AMORTIZATION TABLE
Coupon Rate X Facevalue Market Rate X CarryInterest Expense - In
Date Interest Payment Interest Expense Amoritzation of Bond
March 1, X1
September 1 X1 $ 1,160,000 $ 1,182,177 $ 22,177
December 31, X1 $ 773,333 $ 788,562 $ 15,228
March 1, X2 $ 386,667 $ 394,281 $ 7,614

JOURNAL ENTRIES
March 1, X1 Cash $ 39,405,900
Discount on Bonds Payable $ 594,100
Bonds Payable $ 40,000,000

September 1, X1 Interst Expense $ 1,182,177

Discount on Bonds Payable $ 22,177
 Cash $ 1,160,000

December 31, X1 Interest Expense $ 788,562

Discount on Bonds Payable $ 15,228
Interest Payable $ 773,333

March 1, X2 Interest Expense $ 394,281

Interest Payable $ 773,333
Discount on Bonds Payable $ 7,614
Cash $ 1,160,000

HOW BONDS WOULD BE LISTED ON BALANCE SHEET DECEMBER 31, X1

Bonds Payable $ 40,000,000
Less: Premium on Bonds payab $ 556,695
Bonds Payable Carrying Value $ 39,443,305

HOW BOND INTEREST EXPENSE WOULD BE LISTED ON INCOME STATEMENT DECEMBER 31, X1
Interest Expense $ 1,970,739
Previous Carrying Value + Amoritzation
Carrying Value
$ 39,405,900
$ 39,428,077
$ 39,443,305
$ 39,450,919
 % of total fair
Asset Fair Value value Total Cost Allocated Cost
Land $ 1,600,000 35% $ 4,000,000 $ 1,400,000
Building $ 2,500,000 54% $ 4,000,000 $ 2,160,000
Equipment $ 500,000 11% $ 4,000,000 $ 440,000
TOTAL $ 4,600,000 $ 4,000,000

Land $ 1,400,000
Building $ 2,160,000
Equipment $ 440,000
Cash $ 1,500,000
Notes Payable $ 2,500,000

Note Payable $ 2,500,000

Interest Expense $ 187,500
Cash $ 2,687,500
WEIGHTED AVERAGE TABLE
DATE Units Change Units Balance $ Change
Opening inventory 50
March Purchase 30 80 $ 420.00
April Sale -20 60 $ (230.00)
May purchase 25 85 $ 375.00
October puchase 20 105 $ 320.00
November Sale -60 45 $ (791.43)

FIFO TABLE
Date Opening Inventory March May
Opening Inventory 50
March Purchase 30
April Sale -20
May purchase 25
October Purchase
November Sale -30 -30

Total Units 0 0 25
Cost per unit $10 $14 $15
Total Cost $0 $0 $375
Cost of Goods Sold $ (720.00)
$ Balance Weighted Averge
$ 500.00 $ 10.00
$ 920.00 $ 11.50
$ 690.00 $ 11.50
$ 1,065.00 $ 12.53
$ 1,385.00 $ 13.19
$ 593.57 $ 13.19

October

20

20
$16
$320