QUESTION 1 Light Ltd urgently requires a Statement of Cash Flows to be prepared for the year ended 31 March 2023 and provided you with the following information. Question 1 continued: Question 1 continued: Other information: - During the year ended 31 March 2023 an item of equipment was purchased for $58700 cash. - Dividends paid are to be classified as a cash flow from financing activities, interest income received as a cash flow from operating activities and interest expense paid as a cash flow from financing activities. Required: a) Prepare all the general ledger accounts for Light Ltd in the Answer booklet. b) Prepare the Statement of Cash Flows for Light Ltd in accordance with NZ IAS 7 Statement of Cash Flows, for the year ended 31 March 2023. The direct method is to be used to report the cash flows from operating activities. The reconciliation note, as per FRS-44 NZ, is required. c) Prepare the Statement of Cash Flows for Light Ltd in accordance with NZ IAS 7 Statement of Cash Flows, for the year ended 31 March 2023. The indirect method is to be used to report the cash flows from operating activities. d) The directors of Light Ltd asked you to briefly analyse their cash flow statement [use your answer from b) abovel for the year ended 31 March 2023. e) Assume any interest or dividends paid are to be classified as cash flows from operating activities. Complete the table in the answer booklet to demonstrate what would change to your answers to b) above because of a change in classification. QUESTION 1 Light Ltd urgently requires a Statement of Cash Flows to be prepared for the year ended 31 March 2023 and provided you with the following information. Question 1 continued: Question 1 continued: Other information: - During the year ended 31 March 2023 an item of equipment was purchased for $58700 cash. - Dividends paid are to be classified as a cash flow from financing activities, interest income received as a cash flow from operating activities and interest expense paid as a cash flow from financing activities. Required: a) Prepare all the general ledger accounts for Light Ltd in the Answer booklet. b) Prepare the Statement of Cash Flows for Light Ltd in accordance with NZ IAS 7 Statement of Cash Flows, for the year ended 31 March 2023. The direct method is to be used to report the cash flows from operating activities. The reconciliation note, as per FRS-44 NZ, is required. c) Prepare the Statement of Cash Flows for Light Ltd in accordance with NZ IAS 7 Statement of Cash Flows, for the year ended 31 March 2023. The indirect method is to be used to report the cash flows from operating activities. d) The directors of Light Ltd asked you to briefly analyse their cash flow statement [use your answer from b) abovel for the year ended 31 March 2023. e) Assume any interest or dividends paid are to be classified as cash flows from operating activities. Complete the table in the answer booklet to demonstrate what would change to your answers to b) above because of a change in classification
