filf Home incert Pagflayar farmblas Daca Gerisu Viaw Airhmate Hela' Question NO.1 Statement of cash flows and report to management The management of Locale Ltd is worried because the bank overciraft has increased by a substantial amount over the financial year ended 30 June 2021 despite a large profit and the introduction of additional capital. The intemal comparative statements of financial position at 30 June 2020 and 2021 were as follows. ( 24 marks in total, 1 mark each cell) LOCALE LTD Comparative Strtements of Financial Position as at 30 June Sheet1 Resdy Access bilty inss:yate Surny The statement of profit or loss and other comprehensive Income for the year ended 30 June 2021 for Locale Ltd, prepared for management purposes, is shown below. Additional information 1. The land was revalued upwards during the year by $22500. Filf Home incert Pagplayair farmblas Daca Rerisu View Aurnmate Hela Dest Calion A A= D. Wap Tiat Sismstranter General $$5+4}+8 Alignnent 5 Nurber Fonmuliry - Tuth Narmal Had Gioad Gieboard Fent 5 2 syits \begin{tabular}{l} 209250605125 \\ 13060076750 \\ $15300022500 \\ \hline \end{tabular} Additional information 1. The land was revalued upwards during the year by $22500. 2. During the vear, a dividend of $33750 had been paid. 3. Plant and equipment which had originally cost $82500 and had been depreclated by $15000 was sold during the year for $71250. 4. The company pays income tax in four instalments and the first three instalments have been paid. For the year ended 30 June 2020, the ATO issued an amended assessment of $12750 resulting in an under provislon of $3750 being recorded in 2021 Recqulred (a) Prepare a statement of cash flows as per current accounting standards using the direct method. (b) Prepare a note reconciling cash flows from operating activities to profit. (a) I.OCAI.E. I.TD Statement of Cash Flows Sheet1 Resdy Access bilty nossigate 205 Surny Scarch (b) [1] filf Home insprt Pagplayaur Farmclas Dara Rerisu View Aurtemate Hel Giebound Fanter Fent Alignnent 5Nurber Narmal Had 2 s.sits Cels 638x (a) IOCAI.E. I.TD Statement of Cash Klows for the year ended 30 June 2021 C.ash flows from operating activities: Cash receipts fiom custuents 99 Cash paid to suppbers and employees 100 Cash geserated from operations 101 Income taces peid 102 . Net cash wevd in operating acfivities 103 104 Cash flows frou investing activities: 105 Purchase of frogety, piant and equrement 100 Proceeds fiom sale of equnent 07 Net cosh used in investing activitice 109 Cash flous from financing activities: 110 Proceeds firm issue of shsre capital Dividends psid Nat cash frow finameing actvities 14 Net decrease in cash and cash equivalents Cash and cash equiraleats at beginming of 115 year 116 Cash and cash equivalents at end of year 110 Warkings: 122 Cash receipts from customers: Sheet Resdy tocecessbiity nussigate 205 \begin{tabular}{|r|r|} \hline$127,500 & \\ \hline 1533,750) & $93,730 \\ \hline & ($170,000 \\ \hline & ($98,2000 \\ \hline & (3258,2000 \\ \hline & \\ \hline \end{tabular} D 0e: Q Sharp (i) Nrabze Dul. Anabsis s. Dekie lormst Cis Cis C D F FGH a \begin{tabular}{llll} a & S & U & \\ \hline \end{tabular} Filf Home insert Pagelayar Farmclas Dara Rerisu View Aurtomate Hela Filf Home insert Pagelayar Farmclas Dara Rerisu View Aurtomate Hela Price Licopy Gieboard Fent Alignnent p seard F132 =x 155 Ineome tas paid: Curest Tax Liabit 5ucome lax expease 59 Less: lnctease in curtent tax tabtitr 159 Cash paid tor incoene tax Purchase of groperty aud equipment: solits $78,750 ($13,050) (b) Recouciliation of net cash from operating artivities to profit: Prolit for the period Degreciabiom - laikhes Depreciation - plast and equipment Gais on sale of plant and equipment 1313 Chames in earent assets and current babihtices Increase in acconte receivable Increase in alowince for doubtfial dehts. Incrcase in ireculory 193 Decrease in accourts payable Sheet. \begin{tabular}{|r|} \hline$130,500 \\ \hline 65,250 \\ \hline$57,750 \\ \hline($3750) \\ \hline \end{tabular} \begin{tabular}{|r|} \hline(3138,750) \\ \hline 15,000 \\ \hline(3184,500) \\ \hline,800 \\ \hline \end{tabular} Resdy Access bilty inss:yate 205 Surny Scarch - 0 (b) 1. cts A. Sort \& rints Filat - Salat - Eaitieg Qharp (in) Arahee Analysis file Home insert Pagplayair Farmclas Dara Rerisu View Aurnmate Hela F132 x Chames in earent assets and carrent babihtics: Increase in accounts receivable Increase in alowince for doubtfial debts Increase in irezulory Decrease in accounts payable Increase in curent tax liablity Net cash used in operating activities \begin{tabular}{|r|r|} \hline(3138,750) \\ \hline 15,000 & \\ \hline($184,500) & \\ \hline($9,800) & \\ \hline 513,500 & \\ \hline & ($113,000) \\ \hline \end{tabular} 100 137 188 189 180 Qucstion 2 Match Ltd and Bex Ltd beth began operations on 1 lanuary 2020. For llustrathe purposss, Sheet1 Resdy toccessbiity nuss:yate 205 Surny - 0 8 ( filf Home incert Pagflayar farmblas Daca Gerisu Viaw Airhmate Hela' Question NO.1 Statement of cash flows and report to management The management of Locale Ltd is worried because the bank overciraft has increased by a substantial amount over the financial year ended 30 June 2021 despite a large profit and the introduction of additional capital. The intemal comparative statements of financial position at 30 June 2020 and 2021 were as follows. ( 24 marks in total, 1 mark each cell) LOCALE LTD Comparative Strtements of Financial Position as at 30 June Sheet1 Resdy Access bilty inss:yate Surny The statement of profit or loss and other comprehensive Income for the year ended 30 June 2021 for Locale Ltd, prepared for management purposes, is shown below. Additional information 1. The land was revalued upwards during the year by $22500. Filf Home incert Pagplayair farmblas Daca Rerisu View Aurnmate Hela Dest Calion A A= D. Wap Tiat Sismstranter General $$5+4}+8 Alignnent 5 Nurber Fonmuliry - Tuth Narmal Had Gioad Gieboard Fent 5 2 syits \begin{tabular}{l} 209250605125 \\ 13060076750 \\ $15300022500 \\ \hline \end{tabular} Additional information 1. The land was revalued upwards during the year by $22500. 2. During the vear, a dividend of $33750 had been paid. 3. Plant and equipment which had originally cost $82500 and had been depreclated by $15000 was sold during the year for $71250. 4. The company pays income tax in four instalments and the first three instalments have been paid. For the year ended 30 June 2020, the ATO issued an amended assessment of $12750 resulting in an under provislon of $3750 being recorded in 2021 Recqulred (a) Prepare a statement of cash flows as per current accounting standards using the direct method. (b) Prepare a note reconciling cash flows from operating activities to profit. (a) I.OCAI.E. I.TD Statement of Cash Flows Sheet1 Resdy Access bilty nossigate 205 Surny Scarch (b) [1] filf Home insprt Pagplayaur Farmclas Dara Rerisu View Aurtemate Hel Giebound Fanter Fent Alignnent 5Nurber Narmal Had 2 s.sits Cels 638x (a) IOCAI.E. I.TD Statement of Cash Klows for the year ended 30 June 2021 C.ash flows from operating activities: Cash receipts fiom custuents 99 Cash paid to suppbers and employees 100 Cash geserated from operations 101 Income taces peid 102 . Net cash wevd in operating acfivities 103 104 Cash flows frou investing activities: 105 Purchase of frogety, piant and equrement 100 Proceeds fiom sale of equnent 07 Net cosh used in investing activitice 109 Cash flous from financing activities: 110 Proceeds firm issue of shsre capital Dividends psid Nat cash frow finameing actvities 14 Net decrease in cash and cash equivalents Cash and cash equiraleats at beginming of 115 year 116 Cash and cash equivalents at end of year 110 Warkings: 122 Cash receipts from customers: Sheet Resdy tocecessbiity nussigate 205 \begin{tabular}{|r|r|} \hline$127,500 & \\ \hline 1533,750) & $93,730 \\ \hline & ($170,000 \\ \hline & ($98,2000 \\ \hline & (3258,2000 \\ \hline & \\ \hline \end{tabular} D 0e: Q Sharp (i) Nrabze Dul. Anabsis s. Dekie lormst Cis Cis C D F FGH a \begin{tabular}{llll} a & S & U & \\ \hline \end{tabular} Filf Home insert Pagelayar Farmclas Dara Rerisu View Aurtomate Hela Filf Home insert Pagelayar Farmclas Dara Rerisu View Aurtomate Hela Price Licopy Gieboard Fent Alignnent p seard F132 =x 155 Ineome tas paid: Curest Tax Liabit 5ucome lax expease 59 Less: lnctease in curtent tax tabtitr 159 Cash paid tor incoene tax Purchase of groperty aud equipment: solits $78,750 ($13,050) (b) Recouciliation of net cash from operating artivities to profit: Prolit for the period Degreciabiom - laikhes Depreciation - plast and equipment Gais on sale of plant and equipment 1313 Chames in earent assets and current babihtices Increase in acconte receivable Increase in alowince for doubtfial dehts. Incrcase in ireculory 193 Decrease in accourts payable Sheet. \begin{tabular}{|r|} \hline$130,500 \\ \hline 65,250 \\ \hline$57,750 \\ \hline($3750) \\ \hline \end{tabular} \begin{tabular}{|r|} \hline(3138,750) \\ \hline 15,000 \\ \hline(3184,500) \\ \hline,800 \\ \hline \end{tabular} Resdy Access bilty inss:yate 205 Surny Scarch - 0 (b) 1. cts A. Sort \& rints Filat - Salat - Eaitieg Qharp (in) Arahee Analysis file Home insert Pagplayair Farmclas Dara Rerisu View Aurnmate Hela F132 x Chames in earent assets and carrent babihtics: Increase in accounts receivable Increase in alowince for doubtfial debts Increase in irezulory Decrease in accounts payable Increase in curent tax liablity Net cash used in operating activities \begin{tabular}{|r|r|} \hline(3138,750) \\ \hline 15,000 & \\ \hline($184,500) & \\ \hline($9,800) & \\ \hline 513,500 & \\ \hline & ($113,000) \\ \hline \end{tabular} 100 137 188 189 180 Qucstion 2 Match Ltd and Bex Ltd beth began operations on 1 lanuary 2020. For llustrathe purposss, Sheet1 Resdy toccessbiity nuss:yate 205 Surny - 0 8 (