Presented below is the statement of financial position for Lordtop Ltd as at 30 June 2020 with 30 June 2019.

Lordtop Ltd Statement of Financial Position as at 30 June

Assets2020 $ 2019 $ Cash 234,600 74,600 Accounts Receivable 127,200 111,300 Inventory275,000 221,200 Prepaid Expenses 22,800 23,000 Land238,000 199,000 Building 639,000 339,000 Accumulated Depreciation-Building -111,400 -97,600

Equipment 361,200 331,200 Accumulated Depreciation - Equipment -89,900 -67,000

1,696,500 1,134,700

Liabilities and Shareholders' Equity

Accounts Payable215,000 218,000 Accrued Expense Payable 10,500 14,000 Income Tax Payable 26,000 24,000 Bond Payable 590,000 350,000 Share Capital 588,100 388,100 Retained Earnings 266,900 140,600

1,696,500 1,134,700

Examination of the company's income statement and general ledger accounts for the year ending 30 June 2020 disclosed the following:

1. Net Sales for the period were $1,100 000; Cost of Sales amounted to $650,000; Other Expenses (excluding depreciation) amounted to $160,000 2. Income tax expense for the year amounted to $117,000 3. 50,000 shares were issued at $4.00 4. Bonds of $150,000 were issued for cash 5. An extension was added to the building at the cost of $300,000 cash 6. In January 2020 the company declared and in April 2020 paid $70,000 cash dividend 7. Vacant land next to the company's plant was purchased for $129,000 with payment consisting of $39,000 cash and a bond payable for $90,000 8. Land with a carrying amount of $90,000 was sold for $150,000 9. Equipment costing $30,000 was purchased for cash.

Semester 1, 2019 FINAL EXAMINATION Page 6 of 8ACT501 - Accounting Principles

THIS EXAMINATION PAPER AND SUPPLIED MATERIALS ARE NOT PERMITTED TO BE REMOVED FROM ANY EXAMINATION VENUE IN ANY CIRCUMSTANCE.THIS EXAMINATION IS PRINTED DOUBLE-SIDED.

Required

Prepare a statement of cash flows for Lordtop Ltd for the year ended 30 June 2020 using the direct method as follows:

a) Cash flows from operating activities(4 Marks) i. Cash receipts from customers ii. Cash payments to suppliers iii. Cash payments for expenses iv. Cash payments for income taxes

b) Cash flows from investing activities(4 Marks) i. Purchase of equipment ii. Purchase of land iii. Purchase of building iv. Proceeds from sale of land

c) Cash flows from financing activities(3 Marks) i. Proceeds from issue of shares ii. Proceeds from bond borrowings iii. Payments of dividends

d) Cash flows reconciliation from beginning period to end period(3 Marks) i. Net increase/decrease in cash and cash equivalents ii. Cash at the beginning of the period iii. Cash at the end of the period

e) Workings:i. Cash received from customers(3 Marks) ii. Cash paid to suppliers(5 Marks) iii. Cash paid for services(5 Marks) iv. Cash paid for taxes(3 Marks)