Question
Patrick Ltd is involved in manufacturing swimming pool accessories. Patrick Ltds statement of financial positions for the years ended 30 June 2015 and 30 June
Patrick Ltd is involved in manufacturing swimming pool accessories. Patrick Ltds statement of financial positions for the years ended 30 June 2015 and 30 June 2016 are presented below.
| 2016 ($000) | 2015 ($000) |
Assets |
|
|
Cash | 96 | |
Accounts receivable | 24 | 52 |
Property, plant and equipment | 156 | 120 |
Accumulated depreciationproperty, plant and equipment | (36) | (20) |
Inventory | 92 | 52 |
Total assets | 332 | 204 |
Liabilities |
|
|
Bank overdraft | 40 | |
Accounts payable | 60 | 60 |
Accrued wages | 20 | 16 |
Provision for annual leave | 8 | 12 |
Loans | 60 |
|
Total liabilities | 148 | 128 |
Net assets | 184 | 76 |
Represented by: |
|
|
Shareholders funds |
|
|
Share capital (ordinary shares) | 140 | 20 |
Revaluation surplus | 28 | 8 |
Retained earnings | 16 | 48 |
Total shareholders funds | 184 | 76 |
The statement of comprehensive income (extract) of Patrick Ltd for the year ended 30 June 2016 is:
| 2016 ($000) |
Revenues |
|
Sales | 52 |
Interest (no interest receivable at year end) | 4 |
Profit on sale of property (which had a carrying amount of $20 000) | 8 |
Expenses |
|
Cost of goods sold | (40) |
Depreciation | (20) |
Wages | (20) |
Employees annual leave | (16) |
Loss for the year | (32) |
- INTEREST AND DIVIDEND ARE CONSIDERED IN OPERATING ACTIVITIES IN ACCORDANCE WITH AASB107.
REQUIRED
Prepare a statement of cash flows using direct method for Patrick Ltd for the year ended 30 June 2016. Comparatives are not required. Ignore tax effects. (7 marks)
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