Question
AMAZING BOOKS FOR CHILDREN PTY LTD Comparative statements of financial position 30 th June 2023 2022 2023 Assets Cash at Bank $ 60,000 $ 90,000
AMAZING BOOKS FOR CHILDREN PTY LTD
Comparative statements of financial position
30th June 2023
2022 2023
Assets
Cash at Bank $ 60,000 $ 90,000
Accounts Receivable 222,000 156,000
Inventory 180,000 264,000
Prepaid expenses 132,000 108,000
Plant and Equipment 1,800,000 1,944,000
Accumulated depreciation plant and equipment (540,000) (690,000)
$1,854,000 $1,872,000
Liabilities and equity
Accounts payable $ 288,000 $ 180,000
Expenses payable 66,000 120,000
Deferred tax liability 150,000 132,000
Share Capital 90,000 1,200,000
Retained Earnings 450,000 540,000
$1,854,000 $1,872,000 ( difference is profit and loss account)
AMAZING BOOKS FOR CHILDREN PTY LTD
Statement of financial performance 30th June 2023
Income
Sales Revenue $2,400,000
Expenses
Cost of sales $1,224,000
Wages and salaries 480,000
Depreciation plant and equipment 150,000
Other expenses 234,000
Income tax expense 132,000 2,220,000
Profit $ 180,000
Additional Information
1. All sales and purchases of inventory are on credit
2. Income tax is paid in one instalment during the year
3. A dividend had been paid to shareholders
4. Additional plant had been acquired for a cash outlay.
Required:
(a) Prepare a statement of cash flows for the company for the year ended 30th June 2023. Use the direct method.
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