ACC201: Financial Accounting

Question 4 The Statements of Financial Position of EZ Pte Ltd as at 31 December 20X7 and 31 December 20X8, and its Statement of Profit or Loss for the year ended 31 December 20X8 are as follows: 20X7 EZ Pte Ltd Statements of Financial Positions As at 31 December, 20X8 and 20X7 20X8 Assets Current Assets Cash 166,800 Accounts receivable 254,000 Inventory 186,800 Interest receivable 11,000 Total current assets 620,600 127,800 177,400 312,000 9,800 627,000 Non-Current Assets Equipment Accumulated depreciation Equipment, net 938,600 (202,000) 736,600 994,600 (159,800) 834,800 Total assets 1,357,200 1,461,800 Liabilities and Shareholders' Equity Current Liabilities Accounts payable Income tax payable Total current liabilities 000 164,800 15,600 180,400 241,600 22,600 264,200 22. Shareholders' Equity Share capital Retained earnings Total shareholders' equity Total liabilities and shareholders' equity 1,000,200 176,600 1,176,800 1,357,200 959,200 238.400 1,197,600 1,461,800 EZ Pte Ltd Statement of Profit or Loss For year ended 31 December 20X8 Revenue 990,000 Cost of goods sold (542,000) Gross profit 448,000 Depreciation of PPE (84,000) Gain on sale of equipment 4,400 Interest income 2,100 Other operating expenses (224,800) Profit before tax 145,700 Income tax expense (23,600) Profit after tax 122,100 Additional information: () In May 20X8, EZ Pte Ltd bought an equipment costing $30,000 for cash. (ii) A separate piece of equipment was sold for cash in September 20X8. New shares were issued for cash in October 20X8. No shares were bought back during the year. (iv) The company's practice is to classify interest receipts/payments and dividend receipts under operating cash flows and dividend payments under another category on the Statement of Cash Flows. (v) When preparing the Statement of Cash Flows, the company's practice is to present the section on cash flows from operating activities using the indirect method. Required: Prepare EZ Pte Ltd's Statement of Cash Flows for the year ended 31 December 20X8. (22 marks)