Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Exploring Strategic Change

Authors: Julia Balogun, Veronica Hope Hailey, Stafanie Gustafsson

4th Edition

0273778919, 9780273778912

More Books

Students also viewed these Accounting questions

Question

Distinguish between intrinsic and extrinsic teleology.

Answered: 1 week ago

Question

What is the general process for selecting expatriates?

Answered: 1 week ago