The following data relate to Emporium Ltd.

Additional information
1. Dividends were paid during the year.
2. The increases in investments and machinery were from cash purchases.
3. The increases in land and buildings were from purchases but were partly funded by an increase in the mortgage with the bank.
4. Share capital was issued during the year for cash.
Required

(a) Prepare the statement of cash flows for Emporium Ltd for the year ended 30 June 2020, using the direct method.

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

(c) Prepare a note to disclose non‐cash financing and investing activities.

Transcribed Image Text:

INCOME Sales revenue EXPENSES Cost of sales Depreciation machinery Depreciation buildings Other expenses PROFIT ASSETS Cash at bank Accounts receivable Inventory Investments Machinery (net) Buildings (net) Land EMPORIUM LTD Income Statement for the year ended 30 June 2020 $720000 30000 $1215000 15000 331 500 1 096 500 118500 EMPORIUM LTD Comparative Statements of Financial Position as at 30 June 2019 $ 55500 144000 120000 15000 225 000 150000 67 500 $777000 2020 $ 39000 135000 150000 18000 300 000 240000 150000 $1032000