AutoSave OFF w- 2020 Sem 1 Practice Questions - Saved to my Mac Q Home Insert Draw Design Layout References Mailings Review View Picture Format ? Tell me Share Comments Arial v 11 A A Aa Ap AaBbCcDdE AaBbCcDdE AaBbCcDdE AaBbCcDdE AaBbCcDdE AaBbCcD AaBbCcDd AaBbCcDdEc Paste BI Uvab X2 X |A LA Norma Body Text List Paragraph No Spacing Table Paragr... Heading 1 Heading 2 Heading 3 Styles Pane Question 5 (20 MARKS) Part 1 HUTT ELECTRICAL Comparative Statements of Financial Position as at 30 June 2019 2020 ASSETS Cash at bank $ 22 500 69 000 Accounts receivable 82 500 70 500 Inventory 165 000 216 000 Prepaid insurance 7 50 1 500 Property 90 50 172 500 Plant and equipment 757 500 1 072 500 Accum. depreciation - plant and equipment (102 000) (154 500) TOTAL ASSETS $1 123 500 $1 447 500 LIABILITIES AND EQUITY Accounts payable 64 500 75 000 Interest payable 7500 4 500 Other accrued expenses 13 500 18 000 Mortgage payable 367 500 442 500 Share capital 500 000 750 000 Retained earnings 170 500 157 500 TOTAL LIABILITIES AND EQUITY $1 123 500 $1 447 500 HUTT ELECTRICAL Income Statement for the year ended 30 June 2020 Sales $1 047 000 Less: Cost of sales 780 000 GROSS PROFIT 267 000 Add: Other income: Rent income $ 9000 Gain on sale of property 20 000 29 000 296 000 Less: Expenses: Interest expense 34 500 Loss on sale of plant 6 500 Other expenses 231 000 272 000 PROFIT $ 24 000 (Question adapted from Exercise 18.8 of the textbook) The comparative statements of financial position of Hutt Electrical as at 30 June 2019 and 2020 and the income statement for the year ended 30 June 2020 are shown above. Additional information: 1) Other expenses include $52 500 depreciation expense. 2 ) 3 ) All sales and purchases of inventory are on credit. Rent income is from an investment property of Hutt Electrical. Required Prepare a statement of cash flows from operating activities only for Hutt Electrical for the year ended 30 June 2020 using the direct method. Show your workings by re-constructing all relevant T-ledger accounts. (15 marks) 5 Page 5 of 6 1019 words x English (Australia) Focus + 100%