Question
A summarised comparative statement of financial position of Silver Ltd is presented below, together statement of profit or loss and other comprehensive income for the
A summarised comparative statement of financial position of Silver Ltd is presented below, together statement of profit or loss and other comprehensive income for the year ended 30 June 2016.
30 June 2015
30 June 2016
Cash
$ 90 000
$70 000
Trade receivables
138 000
210 000
Allowance for doubtful debts
(6 000)
(12 000)
Inventories
90 000
134 000
Available-for-sale investments
106 000
120 000
Plant
374 000
450 000
Accumulated depreciation
70 000
(106 000)
$722 000
$866 000
Accounts payable
$ 130 000
$150 000
Accrued interest
10 000
14 000
Current tax payable
30 000
36 000
Deferred tax
60 000
74 000
Borrowings
160 000
200 000
Share capital
200 000
200 000
Investment revaluation reserve
4 000
14 000
Retained earnings
128 000
178 000
$722 000
$866 000
SILVER LTD
Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2016
Sales
Cost of sales
$ 2 070 000
(1 548 000)
Gross profit
Distribution costs
Administration costs
Interest expense
522 000
(152 000)
(192 000)
(14 000)
Profit before tax
Income tax expense
164 000
(48 000)
Profit for the year
Other comprehensive income
Gain on revaluation of investments net of tax
116 000
10 000
Total comprehensive income
$ 126 000
Additional information
(a)The movement in the allowance for doubtful debts for the year comprises:
Balance at 30 June 2015
$6 000
Charge/expense for year
10 000
Bad debts written off
(4 000)
Balance at 30 June 2016
12 000
(b)Available-for-sale investments are measured at fair value, with increases/decreases being recognisein other comprehensive income and accumulated in the investment revaluation reserve until investments are sold.
(c)There were no deposals of plant during the year
(d)A dividend of $66 000 was paid during the year
(e)There were no acquisitions or disposals of investments during the year.
Required
Using the directmethod of presenting cash follows form operating activities, prepare a statement of cash flows in accordance with AASB 107/IAS 7 for the year ended 30 June 2016.
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Fundamental Accounting Principles Volume II
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
16th Canadian edition
1259261433, 978-1260305838
