Additional Information

a. New equipment was purchased at a cost of $250,000 for cash.

b. Equipment with a cost of $120,000 and accumulated depreciation of $105,000 was sold for cash.

c. Buildings additions were paid for in cash.

d. Shares in Thanos Ltd with a cost of $150,000 were sold for cash.

e. Debentures were issued for cash.

f. An additional 40,000 ordinary shares were issued for cash at $6 per share.

g. Dividends were paid during the year in cash.

h. Repayments of loan principal amounting to $20,000 were made during the year.

i. Deposits at Call and Bank Overdraft are to be considered as part of Cash and Cash Equivalents.

Question: Prepare cash flow statement with direct method and relevant T-account

Titan Itd Statement of Financial Position as at 30 June 2019 30-Jun-191 30-Jun-18 CURRENT ASSETS $ $ Cash 15,000 NIL Deposits at call 83,000 41,000 Trade Receivables 277,000 220,000 Allowance for Doubtful Debts (14,500) (11,500 Inventories 503,000 477,600 Prepaid Expenses 40,000 45,000 772,100 903,500 NON-CURRENT ASSETS Deferred Tax Asset 2,200 2,000 225,000 375,000 1,950,000 1,350,000 Shares in Thanos Ltd Buildings - at cost Accumulated depreciation-buildings Equipment - at cost (469,000) (505,000) 890,500 760,500 Accumulated depreciation equipment (289,500) (348,000) 500,000 Land - at cost 500,000 2,773,200 2,170,500 TOTAL ASSETS 3,676,700 2,942,600 CURRENT LIABILITIES Bank Overdraft 63,000 107,000 Accounts payable 433,500 457,600 Accrued Expenses 33,750 29,500 Interest Payable 25,000 22,5001 Dividend Payable 180,000 195,000 Current tax liability 72,000 60,000 807,250 871,600 NON-CURRENT LIABILITIES 7,500 Deferred Tax Liability Bank Loan (Secured) 6,500 100,000 180,000 9% Debentures 800,000 600,000 987,500 706,500 TOTAL LIABILITIES 1,794,750 1,578,100 1,129,500 889,500 Share Capital Retained Earnings 752,450 475,000 1,364,500 1,881,950 TOTAL EQUITY AND LIABILITIES 3,676,700 2,942,600 Titan Ltd Statement of Profit or Loss for the year ended 30 June 2019 Income Sales 6,580,000 Dividends Received 43,000 95,000 Gain on sale of share investment 79,000 Gain on sale of equipment Discount received 12,750 Total Income 6,809,750 Less: Expenses: Cost of Sales 3,475,000 46,500 Depreciation Expense - equipment Depreciation Expense - buildings 36,000 Interest Expense 73,000 Bad Debts Expense 14,650 Discount Allowed 5,250 2,411,100 Employee and Other Expenses Profit before Tax 6,061,500 748,250 (290,800 Income Tax Expense Profit for the year 457,450