Financial figures of the business of C. Wilson for the last 2 years are shown below. The

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Financial figures of the business of C. Wilson for the last 2 years are shown below.

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The income statement for the business for the year ended 30 June 2021 reveals the following details.

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Additional information

1. During the year ended 30 June 2021, Wilson withdrew $30 per week in cash for 52 weeks for private purposes.

2. Wilson also withdrew $1200 on her business bank account to pay her personal income tax.

3. Land, shown in the accounts at $6000, was sold during the year for $8400.

4. Plant costing $1800 and written down to $900 was sold for $720.

5. Ignore GST.

Required

(a) Prepare a statement of cash flows for the year ended 30 June 2021 using the direct method.

(b) Prepare the note to the above statement reconciling cash flows from operating activities with profit.

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Financial Accounting

ISBN: 9780730363217

10th Edition

Authors: John Hoggett, John Medlin, Keryn Chalmers, Claire Beattie, Andreas Hellmann, Jodie Maxfield

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