QUESTION 1

Statement of cash flows

Comparative information as at 30 June 2023 and 30 June 2024 for Declare Ltd is as follows.

DECLARE LTD Comparative statements of financial position as at 30 June
	2023	2024
Assets
Cash at bank	62,000	43,000
Accounts receivable	76,000	84,500
Inventory	124,000	113,500
Land	62,500	25,000
Buildings	137,500	265,000
Accumulated depreciation buildings	(85,000)	(100,000)
Plant and equipment	40,000	40,000
Accumulated depreciation plant and equipment	(5,000)	(10,000)
	412,000	461,000
Liabilities and equity
Accounts payable	60,500	67,000
Interest payable	750	250
Other expenses payable	8,750	3,000
Mortgage loan payable	45,000	66,250
Share capital	125,000	125,000
Retained earnings	172,000	199,500
	412,000	461,000

Additional information

1. Gross profit for the year ended 30 June 2024 was $160,500 and consisted of the following.

Sales	443,500
Cost of sales	283,000

2. Purchases of inventory for the year were $272,500.

3. All purchases and sales of inventories were on credit.

4. Profit for the year ended 30 June 2024 was $31,250, after deducting expenses of $129,250 from the gross profit figure.

5. Expenses of $129,250 include depreciation on buildings, and on plant and equipment, a loss on sale of land, and $5,000 in interest expense.

6. During the year ended 30 June 2024, cash dividends were paid.

7. Building extensions were paid for during the year, and a block of land, costing $37,500, was sold for $31,250 cash.

8. No plant was purchased or sold during the year.

Required

(a) Prepare the Statement of Cash Flows for Declare Ltd for the year ended 30 June 2024 using the direct method.

Please follow the below instructions when completing the cash flow statement below:

Please include commas in your amounts to separate thousands in your amounts (do not include spaces or dollar signs)

Show minus figures in brackets (), e.g. (145,000)