Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can someone please help me this question. help me with this question. Part B - Question 2: Statement of Cash Flows [33 marks] Set out

can someone please help me this question. help me with this question.

image text in transcribedimage text in transcribed
Part B - Question 2: Statement of Cash Flows [33 marks] Set out below are Williams Ltd's nancial statements for the year ended 30 June: Williams Limited Comparative Statement of Financial Position as at 30 June M E Assets Cash $ 95,000 $ 47,250 Accounts receivable (net) 86,800 57,000 Inventory 121,900 102,650 Investments (long-term) 84,600 87,000 Property, plant and equipment 250,000 205,000 Accumulated depreciation 149,500) 140,000) Total assets $588,800 $458,900 Liabilities and Shareholders' Equity Accounts payable $ 52,700 48,280 Accrued operating expenses 12,100 18,830 Notes payable (long-term) 100,000 70,000 Share capital 250,000 200,000 Retained earnings 174,000 121,790 Total liabilities and shareholders' equity M M Williams Limited Statement of Prot or Loss for the year ended 30 June 2020 Sales $300,000 Gain on sale of equipment 8,750 Less: 308,750 Cost of sales $ 99,460 Operating expenses 64,370 Income tax expense 7,270 Interest expense m 1 176,540) Net prot after tax 132,210 The following additional information was provided: (a) All sales and purchases of inventories were on account. (b) Accounts payable pertains to inventory creditors. (c) Additional equipment was purchased for cash during the year. ((1) Investments were sold for cash at cost. (e) Equipment costing $47,000 was sold for cash with a gain of $8,750. Part B Question 2 continued over page Part B Question 2 continued (f) A cash dividend was declared and paid during the year. (g) Operating expenses include depreciation expense of $49,700. (h) Income tax expense and interest expense were settled in cash. (i) Additional shares were issued for cash during the year. Required: For the purpose of this question, please ignore GST, but show all your workings. i. ii. Prepare a Statement of Cash Flows for Williams Ltd for the year ended 30 June 2020 using the direct method. (25 marks) Prepare a reconciliation of net prot after tax to net cash provided from operating activities. (8 marks) [Total Part B = 50 marks] Total Marks for Assignment Two = 100 Marks 17

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_2

Step: 3

blur-text-image_3

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

Cost-Benefit Analysis For Public Sector Decision Makers

Authors: Diana Fuguitt

1st Edition

1567202225, 9781567202229

More Books

Students also viewed these Accounting questions

Question

Write a function to calculate x**3 with Ocaml.

Answered: 1 week ago