Asset Financing & Cash Flows Purple Bird Ltd. (“PBL”) is a company…

  

Asset Financing & Cash Flows Purple Bird Ltd. (“PBL”) is a company… Asset Financing & Cash Flows Purple Bird Ltd. (“PBL”) is a company that specializes in manufacturing custom stickers for other companies who want to advertise their brand in various places, for example on cars, store windows, laptops, etc. As such, PBL requires specialized machinery to produce the final products. Below is a summary of the company’s relevant information.Financial statement categoryAs at Dec. 31, 2021As at Dec. 31, 2020PP&E – machinery$2,000,000 $1,200,000Accum. depreciation – machinery$1,000,000$750,000PP&E – office furniture$150,000$180,000Accum. depreciation – office furniture$120,000$150,000Current portion of long-term debt$320,000 $0Long-term debt$320,000 $0Common shares$375,000$300,000Retained earnings$2,700,000$2,350,000Net income (for the year)$450,000$315,000On July 1st, PBL purchased a new specialized machine to allow for custom printing of stickers with a more durable material. The machine cost $800,000. To finance the purchase, PBL obtained a 5-year bank loan for the same amount earlier in the day on July 1st and made a quarterly principal payment of $80,000 on September 30th and December 31st. Additionally, PBL had to dispose of some damaged furniture that was fully depreciated (with a residual value of $0) and originally cost $30,000 back in 2015. Surprisingly, PBL was able to generate a $3,000 gain on the disposal of the asset as the furniture was “back in style”. Cash dividends were paid on October 15th 2021.Required:1. Prepare partial cash flow statement showing the investing activities and financing activities sections only, for the year ended Dec. 31, 2021. You do not need to prepare the operating activities section.    Business Accounting ADMN MISC Share (0)