Cullumber Inc.
Statement of Financial Position
December 31
Assets
Cash
Accounts receivable
Inventory
Estimated inventory returns
Long-term investments
Equipment
Accumulated depreciation
Total assets
Liabilities and Shareholders' Equity
Accounts payable
Property tax payable
Refund liability
Bank loan payable-current portion
Bank loan payable-non-current portion
Common shares
Retained earnings
Total liabilities and shareholders' equity
2024
2023
$82.300 $48.100
80.200 36.400
130,000 102,000
1,860 1,090
96.200 108.000
291.800 206.000
(50,200) (40,400)
$632,160 $461,190
$63,400
$48,600
11.000
18.400
930
700
127,000
60,300
14.100
10,000
239,000 199.000
176.730 124.190
$632,160 $461,190
Cullumber Inc.
Statement of Income
Year Ended December 31, 2024
Sales
Cost of goods sold
Gross profit
Operating expenses
Income from operations
Other income and expenses
Interest expense
Realized loss on sale of long-term investments
Income before income tax
Income tax expense
Net income
$318,000
100,000
218,000
81,700
136,300
$13,100
6.600 19,700
116,600
27.720
$88,880
Additional information regarding 2024:
1. Long-term investments were sold for $5,200, resulting in a realized loss of $6,600.
2. New equipment costing $142,000 was purchased for $71,200 cash and a $70,800 bank loan payable.
3. Equipment costing $56,200 was sold for $15,600, resulting in a gain of $8,800.
4. Accounts payable relate to merchandise suppliers; property tax payable relates to operating expenses.
5. A dividend was paid during the year.
6. Operating expenses include $59,200 of depreciation expense and an $8,800 gain on disposal of equipment.
7. The company issued common shares for $60,000 cash and bought back and retired some other common shares at the cost
they were originally issued at.
Prepare the statement of cash flows using the direct method. Show amounts that decrease cash flow with either a - sign (e.g., -15,000) or
in parentheses (e.g. (15,000)).
Cullumber Inc.
Statement of Cash Flows
