ACCIO (August October 2021 Semester, Online Examination) Peres Question 2 DELTA Enterprise has prepared its final accounts as below: S'000 S'000 Balance Sheet as at 30 September: Current assets Cash at bank Account receivables Inventory Prepaid Rent 2021 S'000 120 2.000 500 80 2020 S'000 300 1,700 360 94 2,700 2,454 900 900 820 940 1.200 (380) 480 (220) 1.200 (260) 480 (148) Non-current assets Land, Motor vehicle. Less: Accumulated depreciation Office equipment...... Less: Accumulated depreciation TOTAL ASSETS Current Liabilities Salary payable ... Insurance payable Account payables Term loan payable, due on 01 July 2021 260 4.680 332 4.626 300 30 270 0 600 330 49001 260 26 320 500 1.106 500 Non-current liabilities Term loan payable, due on 30 June 2030 TOTAL LIABILITIES NET ASSETS 1.100 3.580 1.106 3.520 Owner's Equity Beginning capital Add: Net profit Add: Addition capital Less: Drawings ENDING CAPITAL 3.520 1.800 100 (1.840) 3.580 3,480 600 0 (560) 3.520 ACCIO (August & October 2021 Semester, Online Examination) Page 9 2020 S'000 S'000 5.000 8,000 10.000 3.200 (4,000) 6,000 4.800 DELTA Enterprise: Income Statement for the year ended 30 September. 2021 S'000 Sales ....... Less: Cost of goods sold Gross profit ..... Less: Expenses Interest expense 50 Depreciation expense 200 Insurance expense 120 Loss on disposal of office equipment 1 Rent expense. * 800 3,000 Salary expense Sundry operating expenses 29 55 200 120 800 3,000 24 4,200 4,200 1.800 NET PROFIT Notes to the accounts: (1) DELTA Enterprise paid the interest expense and the sundry operating expenses as they arose during the year. (ii) On 29 September 2021 DELTA Enterprise sold a used computer for $1,000 cash. Its original cost was $10,000. At the time of sale, its accumulated depreciation was $8,000 (iii) During the financial year 2021 DELTA Enterprise bought a brand-new computer for $10,000 cash. (iv) On 30 July 2021, the owner of DELTA Enterprise injected $100,000 cash into the business. (V) During the whole financial year of 2021, the owner of DELTA Enterprise withdrew $1.840,000 cash to buy a personal home. (vi) On 01 July 2021 DELTA Enterprise paid back the Term Loan of $500,000. (vii) In the financial year 2021 DELTA Enterprise borrowed a Term Loan of $500,000. repayable in the mid-year of 2030, REQUIRED: (a) Prepare a detailed Cash Flow Statement of DELTA Enterprise for the year ended 30 September 2021. (15 marks) (b) The owner of DELTA Enterprise could not understand the Cash Flow Statement you have prepared. Explain it to the owner
