PRACTICAL QUESTION

Miranda Limiteds Balance Sheets as at 30 June 2017 and 2018 were as follows:

Additional Information:

The company classifies interest as operating cash flow.

$10,000 in bonus shares were issued.

The company measures its plant & equipment at fair value.

Required: Using the direct method, calculate the following.

You may use the reconstruction of the T-accounts or formula method or both. Show all working.

A. Cash receipts from customers

B. Cash paid to suppliers for inventory

C. Cash paid to suppliers for other services - wages, insurance, other operating expenses

D. Cash received from interest income

E. Cash paid for taxes

Miranda Limited's Balance Sheet as at 30 June 2018 2017 ASSETS Current Assets Cash Accounts Receivable Provision for Doubtful Debts Inve 24,000 120,000 240,000 20,000) 440,000 260,000 4,000 602,000508,000 60,000 21,000 id Insurance 3,000 Non-Current Assets Land Buildin Accumulated Depreciation-Buildin Plant & E Accumulated De 30,000 200,000 200,000 50,000 300,000 280,000 45,000 385,000 415,000 987,000 923,000 30,000 on- Plant& Equipment TOTALASSETS LIABILITIES AND OWNERS' EQUITY Liabilities Accounts Payable Accrued Wages (Wages Payable) Provisions- Other Current Tax Payable Zero-coupon debenture (Non-Interest Bearing Loan) 260,000 250,000 50,000 20,000 3,000 229,500 200,000 557,000 523,000 60,000 7,500 Owners' Equity Share Capital Asset Revaluation Reserve General Reserve Retained Profits Total Equit TOTAL LIABILITIES AND OWNERS' EQUITY 60,000 0 60,000 90,000 260,000 250,000 430,000 400,000 987,000 923,000 90,000 20,000