Question
Preparation of a statement of cash flow BORACHIO LTD Balance Sheet As at 30 June 2019 2019 2018 $000 $000 Cash 162 144 Accounts receivable
Preparation of a statement of cash flow
BORACHIO LTD
Balance Sheet
As at 30 June 2019
2019
2018
$000
$000
Cash
162
144
Accounts receivable
144
116
Inventory
175
190
Prepaid insurance
9
6
Land
217
149
Equipment
549
437
Accumulated depreciation - equipment
(214)
(149)
Totalassets
1,042
893
Accounts payable
87
51
Accrued expenses
27
11
Interest payable
9
9
Debentures payable
100
122
Share capital
490
420
Retained earnings
329
280
Totalliabilities and shareholders' equity
1,042
893
BORACHIO LTD
Income Statement
For the year ended 30 June 2019
$000$000
Sales
1,520
COGS
1,110
Gross Profit
410
Operating expenses
Insurance expense
9
Depreciation expense
65
Other operating expenses
85
Interest expense25
Loss on sale of land18202
Profit before income tax208
Income tax83
Net Profit125
The following additional information during the year was obtained:
1.Land with an original cost of $60 000 was sold
2.All sales over the year are made on credit.
Required:
prepare a statement of cash flows for Borachio Ltd for the year ended 30 June 2019.
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Financial Accounting A Business Process Approach
Authors: Jane L Reimers
2nd Edition
131473867, 978-0131473867
