Question 1

The following statement of financial position relates to XYZ Ltd for the years ending 30 June 2019 and 30 June 2020.

XYZ Ltd Statement of Financial Position As at 30 June
	2020	2019
Cash at Bank	$ 43,000	$ 42,000
Accounts Receivable	34,500	96,000
Inventory	113,500	124,000
Land	45,000	62,500
Buildings	265,000	137,500
Accumulated depreciation Buildings	(100,000)	(85,000)
Plant & Equipment	40,000	40,000
Accumulated depreciation Plant & Equipment	(10,000)	(5,000)
	431,000	412,000
Accounts Payable	67,000	60,500
Interest Payable	250	750
Accrued Employee Expenses	3,000	8,750
Mortgage loan payable	66,250	45,000
Share Capital	125,000	125,000
Asset Revaluation Reserve Land	20,000
Retained earnings	149,500	172,000
	431,000	412,000

Additional Information:

1. Gross profit for the year ended 30 June 2020 was $110,500, and consisted of:

Sales Revenue $393,500

Cost of Sales 283,000

2. All purchases and sales of inventory were on credit.
3. Loss for the year ended 30 June 2020 was $18,750, after deducting expenses of $129,250 from the gross profit figure.
4. Expenses of $129,250 comprise of depreciation on Buildings and on Plant & Equipment, a loss on sale of land, $5,000 in interest expense, and other expenses (other expenses relate to Accrued Employee Expenses in the statement of financial position).
5. During the year ended 30 June 2020, cash dividends were paid.
6. The increase in Buildings was due to building extensions which were paid for during the year, and a block of land costing $37,500 was sold for $31,250 cash.
7. No Plant & Equipment was purchased or sold during the year.
8. The revaluation increment on land of $20,000 does not have any effect on profit or loss.

Required:

Prepare the statement of cash flows of XYZ Ltd for the year ended 30 June 2020 based on the direct method of presentation. Ignore tax effects. Notes are not required.

(Total = 16 marks)

Your answers:

Provide your answers from here

XYZ LTD Statement of Cash Flows for the year ended 30 June 2020
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

Workings:

Provide your workings from here. Please use the blank T-account format (if necessary).

Account name