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Comprehension questions Explain the differences between the presentation of cash flows from operating acties under the direct method and their presentation under the indirect method.
Comprehension questions Explain the differences between the presentation of cash flows from operating acties under the direct method and their presentation under the indirect method. Do you considerone mered to be more useful than the other? Why? The statement of cash flows is said to be of assistance in evaluating the financial strength of an entity yet the statement can exclude significant non-cash transactions that can materially affect the financial strength of an entity. How does A168 107/1AS 7 seek to overcome this issue? Application and analysis exercises / Preparation of a statement of cash flows A summarised comparative statement of financial position of Green Land is presented below 30 June 2018 > Sune 2019 Cash 35 000 130 000 180 000 Accumulated depreciation (450000 345.000 Trade accounts 75 000 95000 Deferred tax liability 3000 100 000 150 000 ke we arriv 77000 7000 Investment relation surplus - 252000 125.000 ACC203 FA 2 Preparation Guide Page 2 of 5 Updated 3 July 2020 K ACC203 Financial Accounting 2: Preparation Guide Additional information . An investment was sold for $15000. There was no gain or loss accomated in the investment revaluation reserve in respect of this investment There were no disposals of plant. The profile for the year was $60 000, after income tax expense of $20.00 . A dividend of 347 000 was paid during the year. . The only tem of other comprehensive income was a gain on relation of financial investments and Its associated tax effect Required Using the indirect method of presenting cash flows from operating activities, prepare a statement of cash flows in accordance with AASB 107/IAS 17 for the year ended 30 June 2019. Comprehension questions Explain the differences between the presentation of cash flows from operating acties under the direct method and their presentation under the indirect method. Do you considerone mered to be more useful than the other? Why? The statement of cash flows is said to be of assistance in evaluating the financial strength of an entity yet the statement can exclude significant non-cash transactions that can materially affect the financial strength of an entity. How does A168 107/1AS 7 seek to overcome this issue? Application and analysis exercises / Preparation of a statement of cash flows A summarised comparative statement of financial position of Green Land is presented below 30 June 2018 > Sune 2019 Cash 35 000 130 000 180 000 Accumulated depreciation (450000 345.000 Trade accounts 75 000 95000 Deferred tax liability 3000 100 000 150 000 ke we arriv 77000 7000 Investment relation surplus - 252000 125.000 ACC203 FA 2 Preparation Guide Page 2 of 5 Updated 3 July 2020 K ACC203 Financial Accounting 2: Preparation Guide Additional information . An investment was sold for $15000. There was no gain or loss accomated in the investment revaluation reserve in respect of this investment There were no disposals of plant. The profile for the year was $60 000, after income tax expense of $20.00 . A dividend of 347 000 was paid during the year. . The only tem of other comprehensive income was a gain on relation of financial investments and Its associated tax effect Required Using the indirect method of presenting cash flows from operating activities, prepare a statement of cash flows in accordance with AASB 107/IAS 17 for the year ended 30 June 2019
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