End of Chapter Exercise 18.10 The following comparative statements of financial position and income statement are for the business of Bargains Galore Pty Ltd: Bargains Galore Pty Ltd Comparative statements of financial position as at 30 June 2016 2017 Assets Cash at bank $19,000 $29,000 Accounts receivable 77,000 68,000 Inventory 52,000 61,350 Prepaid expenses 42,000 34,000 Plant and equipment 620,000 666,000 Accumulated depreciation - plant and equipment (180,000) (230,000) $630,000 $628,350 Liabilities and equity Accounts payable $124,000 $87,000 Expenses payable 25,000 35,000 Current tax liability 55,000 48,000 Share capital 300,000 300,000 Retained earnings 126,000 158,350 $630,000 $628,350 Bargains Galore Pty Ltd Income statement for year ended 30 June 2017 Income Sales revenue $815,000 Expenses Cost of sales $415,650 Wages and salaries 163,000 Depreciation - plant and equipment 50,000 Other expenses 77,000 Income tax expense 41,000 746,650 Profit 68,350 Additional information a) All sales and purchases of inventory are on credit. b) Income tax is paid in one instalment during the year. c) A dividend had been paid to shareholders. d) Additional plant had been acquired for a cash outlay. Bargains Galore Pty Ltd Statement of cash flows for the year ended 30 June 2017 Inflows (Outflows)