End of Chapter Problem 18.21 The following data relate to Emporium Ltd: Emporium Ltd Income statement for year ended 30 June 2020 Income Sales revenue $1,205,000 Expenses Cost of sales $710,000 Depreciation machinery 30,000 Depreciation buildings 17,000 Other expenses 309,500 1,066,500 Profit $138,500 Emporium Ltd Comparative statements of financial position as at 30 June 2019 2020 Assets Cash at bank $55,500 $46,000 Accounts receivable 142,000 115,000 Inventory 124,000 179,000 Investments 19,000 22,000 Machinery (net) 210,000 290,000 Buildings (net) 150,000 243,000 Land 67,000 147,500 $767,500 $1,042,500 Liabilities and equity Accounts payable $90,400 $105,400 Expenses payable 6,600 6,100 Mortgage payable 125,000 212,000 Share capital 375,000 455,000 Retained earnings 170,500 264,000 $767,500 $1,042,500 Additional information a) Dividends were paid during the year. b) The increases in investments and machinery were from cash purchases. c) The increases in land and buildings were from purchases but were partly funded by an increase in the mortgage with the bank. d) Share capital was issued during the year for cash. Emporium Ltd Statement of cash flows for the year ended 30 June 2020 Cash flows from operating activities Cash receipts from customers Cash paid to suppliers and employees Cash generated from operations Net cash flows from operating activities Cash flows from investing activities Purchase of investments Purchase of property, plant and equipment Net cash flows from investing activities Cash flows from financing activities Proceeds from issue of share capital II Dividends paid Net cash flows from financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year