Interest Revenue QUESTION 4: Cash Flow Statement (17 marks) You are provided with the following financial information for Ring-A-Round, a company that sells jewellery. 7 500 284 500 Expenses: Static COMPARATIVE BALANCE SHEETS AS AT 30 JUNE 2022 2021 Current Assets Cash at Bank 8 600 26 200 Selling Expense 76 600 Administrative expenses 90 000 Doubtful Debts Expense 4 200 Depreciation Expense 22 000 Interest Expense 4 100 196 900 Profit before tax Income Tax Expense Profit 87 600 (40 000) $47 600 Accounts Receivable (net) 28 200 13 000 Inventory Prepaid Rent 14 000 3.000 $53 800 18 000 2000 $59 200 Additional information: Non-Current Assets Computer 220 000 Less:Accum Depr Computer (62 000) 158 000 160 000 (48 000) During the year Computers which had an historical cost of $30,000 was sold for $25,000 and the company made a gain on disposal of the Computer of $3,000. 112 000 Total Assets 211 800 171 200 ANSWER THIS QUESTION ON THE PRO FORMA PROVIDED Current Liabilities Accounts Payable 25 000 30 000 a. Salaries Payable 2 000 8 000 Tax Payable 16 000 43 000 12 000 50 000 REQUIRED: Prepare a Statement of Cash Flows in the pro forma provided in the student submission file. You must show all calculations (an answer without supporting calculations will receive zero marks) (17 marks) Non-Current Liabilities Bank Loan Total Liabilities Net Assets 70 000 113 000 $98 800 10 000 60 000 $111. 200 ALL WORKINGS MUST BE PRESENTED BELOW IN ORDER TO RECEIVE MARKS Equity Capital - R Round 98 800 $98 800 111 200 $111.200 Static Net Sales Cost of Sales INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2022 Discount Received Gross Profit: Other Revenue: Gain on disposal of assets $450 000 (185 000) 9 000 274 000 3000 15 16