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could i get some help with this question Question 2 -15 Marks Following are extracts from the accounting records of Shelfish Ltd at 30 June
could i get some help with this question
Question 2 -15 Marks Following are extracts from the accounting records of Shelfish Ltd at 30 June 2020: Shellfish Ltd 2019 2020 ($000) ($000) Items from balance sheet as at 30 June 2020 Assets Cash 570 1,030 Trade receivables 150 300 Allowance for doubtful debts (15) (20) Inventory 200 320 Land 200 100 Plant 200 250 Accumulated depreciation (100) (150) Total Assets 1,205 1,830 Liabilities Accounts payable Interest payable Borrowings 150 50 250 250 10 550 Equity Share capital Retained earnings Total liabilities and equity 350 405 1,205 400 620 1,830 Items from income statement for the period ending 30 June 2020 ($000) Sales (all on credit) $500 Cost of sales (150) Gain on disposal of land 30 Doubtful debt expenses (80) Wages and salaries (10) Depreciation expense (50) Interest expense (25) Net Profit 215 Other information: Land with a carrying value of $100,000 is sold with a gain of $30,000 during the year. No plant is sold or scrapped during the year. Assume there are no cash sales, income taxes and dividend payments during the year. Wages and salaries are paid by cash. . REQUIRED Prepare a cash flow statement for Shellfish Ltd for the year ending 30 June 2020 using the direct method. Notes are not requiredStep by Step Solution
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