Additional information

Important Note: The sale of equipment (piece A) had a historical cost of $20,000 and accumulated depreciation of $10,000. It was sold for cash of $10,000.

GST is not included so ignore the GST component of transactions.

Prepare a Statement of Cash Flows for the year ended 30 June 2016 in accordance with accounting standards.

Prepare a statement reconciling cash flows from operating activities with profit.

The following are the financial statements of North Point Enterprises for the year ended 30 June 2016

North Point Enterprises Ltd

Income Statement

for year ended 30 June 16

$

$

Sales

250,000

Less Cost of Goods Sold

Inventories (1/7/15)

14,500

Purchases

135,000

149,500

Less Inventories (30/6/16)

8,000

141,500

108,500

Less Operating expenses

Advertising

12,300

Wages

28,000

Loss on sales of equipment (piece B)

2,000

Depreciation of equipment

12,000

Depreciation of Motor Vehicle

8,000

62,300

North Point Enterprises Ltd
Balance Sheet
		2016			2015
Current Assets	$	$		$	$
Cash at Bank		55,000			21,500
Inventories		8,000			14,500
Accounts Receivable		78,700			42,300
Prepaid Advertising		3,200			1,200
		144,900			79,500
Non-Current Assets
Equipment	46,500			66,500
Less Accum Depreciation	22,000	24,500		18,000	48,500
Motor Vehicles	44,000			44,000
Less Accum Depreciation	26,000	18,000		18,000	26,000
Total Non-Current Assets		42,500			74,500
TOTAL ASSET		187,400			154,000
Less Current Liabilities
Accounts Payable		34,900			57,700
Net Assets		$ 152,500			$ 96,300
Owner's Equity
Paid up Capital		95,300			85,300
Retained Profit		57,200			11,000
		$152,500			$96,300

$46,200