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hello i need the answer of this question in an hour please. ACCY200 Financial Accounting IIA Spring 2017 Special Question 9 (due in week 13
hello i need the answer of this question in an hour please.
ACCY200 Financial Accounting IIA Spring 2017 Special Question 9 (due in week 13 tutorial) A summarised comparative Statement of Financial Position of Leather Ltd is presented below, together with a Statement of Profit or Loss for the year ended 30 June 2017. Assets Cash at bank Bank bills Accounts Receivable Allowance for doubtful debts Inventory Prepaid insurance Deferred tax asset Equipment (cost) Accumulated depreciation - equipment Land Liabilities Bank overdraft Accounts payable Accrued expenses Accrued interest Current tax liability Final dividend payable Mortgage loan Deferred tax liability Equity Share Capital Retained earnings Asset Revaluation Surplus 2017 2016 $23,600 5,000 49,300 (5,000) 94,200 19,000 14,400 360,000 (95,000) 1,700,000 $2,165,500 $20,200 25,560 37,800 (3,800) 96,600 15,000 12,200 240,000 (94,000) 1,600,000 $1,949,560 $9,000 112,500 21,000 40,000 13,500 42,000 65,000 53,000 92,560 19,000 38,000 15,000 38,000 20,000 1,455,000 134,500 220,000 $2,165,500 1,405,000 172,000 150,000 $1,949,560 Leather Ltd Statement of Profit or Loss For the year ended 30 June 2017 Sales Cost of Sales Gross profit Gain on sale of equipment Bad debts expense Depreciation on equipment Interest expense Insurance expense Other accrued expenses Profit before tax Income tax expense Profit after tax $2,794,600 (1,864,000) 930,600 25,000 (5,600) (21,000) (36,800) (17,900) (820,000) 54,300 (28,800) $25,500 The following additional information relates to transactions that occurred during the year ended 30 June 2017: 1) Equipment with a carrying amount of $40,000 and a cost of $60,000 was sold for cash at a gain of $25,000. 2) A block of land with an original value of $800,000 was revalued upwards to $900,000. 3) An interim dividend was paid in cash during the year. 4) The tax rate is 30%. Required: In accordance with AASB107 Statement of Cash Flows, and using the direct method, prepare a cash flow statement for Leather Ltd for the year ended 30 June 2017. Show all workingsStep by Step Solution
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