Home sert Page Layout Formulas Data Review cted View This file originated from an internet location and might be unsafe Click 196 Enableding Question NO.1 Statement of cash flows and report to management he management of Locale Ltd is worried because the bank overdraft 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 internal 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 Statements of Financial Position as at 30 June EQUITY Share capital Revaluation surplus General reserve Retained earnings 2020 2021 $450000 $577500 22500 75000 25500 127 500 217750 20 NON-CURRENT ASSETS 21 Land 22 Buildings 21 Accumulated depreciation buildings 000 Plant and equipment 310500 5906500 15600 30000 $845250 37500 60000 52500 50000 34 Accumulated depreciation-pant in t 0500 25 200000 26 CURRENT ASSETS 27 Petty cash ON Awance for out dem 115000 LESS CURRENT LITES Ay esc ? Formulas Data Review View TACCYSZ MATCH ADOM Home Insert Page Layout Protected View This Me originated from an internet location and might be unafe Click for more detail Euble Editing E196 Current tax liability A Bank overdraft Working capital TOTAL NET ASSETS 9000 88505 151000 C 22050 258750 325300 266500 400 500 $500 500 $845250 The statement of profit or loss and other comprehensive income for the year endec 30 June 2021 for Locale Ltd, prepared for management purposes, is shown below. INCOME LOCALE LTD Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2021 Sales revenue (net) Cost of sales Less Discount received GROSS PROFIT $825 000 $415500 (1125 414375 410625 Proceeds from sale of plant and equipment 3750 414375 EXPENSES Salaries and wages expense 90325 Depreciation on buildings 7500 Depreciation on plant and equipment 57750 Electricity expe 4500 Bad debts expense 45000 206 125 Profit before tax 209250 Income tax expense 75000 Underprovision for income tax 3750 750 PROFIT FOR THE PERIOD 130500 Other comprehensive income Gamgeevaluation of land TOTAL COMPREHENSIVE INCOME FOR THE YEAR 22500 $13000 Sheets 309 Sunny S Page Layout Formula Duta Review view Protected View This file originated from an internet location and might be unale Cck for more deta E196 A TACCHI M Enable Editing Additional information 1. The land was revalued upwards during the year by $22 500. 2. During the year, a dividend of $33 750 had been paid. 3. Plant and equipment which had originally cost $82 500 and had been depreciated by $15 000 was sold during the year for $71 250. 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 $12 750 resulting in an under provision of $3750 being recorded in 2021. Required (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. Cak ceigts Soc LOCALE LTD Statement of Cash Flows for the year ended 30 June 2021 Search Home Formules Data Review View tected View This fie originated from an internet location and might be unsals, Cd for more detail C114 Statement of Cash Flows for the year ended 30 June 2021 Cash flows from operating activities: Cash receipts from customers Cash paid to suppliers and employees Cash generated from operations Income taxes paid Net cash used in operating activities Cash flows from lavesting activities: Purchase of property, plant and equipment Proceeds from sale of equipment Net cash used in mesting activities Cash flows from flasacing activities Proceeds from ise of share capital Dividels paid Net conle from fing 14 Net decrease in cask sd ca Cash and cash equivalents at beginning of year 116 Cash and cash equivalents at and of year Working TY ? B 2 . # * 3 D $ 4 Q W % ar 5 ^ ER T 40 6 & 7 M 8 C V 19 Home t Page Layout Formulas View Protected View The Me originated from a locate and might be une Ca C114 A 20 Workings: 21 22 Cash receipts from customers: 123 124 Accounts Receivable 125 12 12 129 130 Allowance for Doubtful Debts 131 133 134 135 Cash paid to suppliers: 36 137 Cash payments for purchases: 138 139 140 142 140 340 145 146 147 767 Surry P ? Imitory Ascot Payable . a 2 # 3 $ 4 Search ae 5 SACCING 49 A 6 & 7 hp 8 142 145 Dat Potted View the ongated from an int and he be unafe Chur me details Dable Eding C114 A 146 Accounts Payable 142 148 14 150 252 156 152 358 200 ? lecome tax paid Correst Ts Liability Purchase of property and pet