Below are the comparative statements of financial position of Lithium Ltd. Additional information 1. Income statement details

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Below are the comparative statements of financial position of Lithium Ltd.

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Additional information 1. Income statement details were: sales revenue $750 000; cost of sales $603 000; expenses $116 360 (excludes depreciation and carrying amount of vehicle sold); bad debts expense $14 440; and tax expense $4200.
2. A dividend was paid during the year.
3. A vehicle that cost $5600 originally was sold during the year for $3000. The vehicle had been depreciated by $3200 at date of sale.
4. The company pays tax in one instalment. The single instalment of $3200 due by 21 October 2020 was paid.
Required

(a) Prepare a statement of cash flows for the year ended 30 June 2021 in accordance with the direct method. Include any appropriate notes.

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Accounting

ISBN: 9780730363224

10th Edition

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

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