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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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