Question 16.6 The reconstruction of accounts (formulae) approach

From the following information of Outofsight Ltd, prepare a statement of cash flows for the year ended 30 June 2017 based on the direct method of presentation. Include any appropriate notes.

OUTOFSIGHT LTD Statements of Financial Position as at 30 June
	2017					2016
Assets Petty cash Cash at bank Bank bills Accounts receivable Allowance for doubtful debts Inventory Motor vehicles Acc. depn motor vehicles Office furniture Acc. depn office furniture Total assets Liabilities Accounts payable Current tax liability Equity Share capital Retained earnings Total liabilities and equity	$	127 400 (11 400 50 400 (12 800 18 400 (8 400	) ) )	$ $ $ $	400 30 600 12 000 116 000 70 800 37 600 10 000 277 400 47 200 4 200 196 000 30 000 277 400	$	102 960 (6 960 42 000 (10 000 16 000 (7 600	) ) )	$ $ $ $	200 24 200 10 000 96 000 74 600 32 000 8 400 245 400 45 000 3 200 165 000 32 200 245 400

	OUTOFSIGHT LTD Statement of Profit or Loss for the year ended 30 June 2017
	Income Sales revenue Proceeds from sale of vehicle Less: Expenses Cost of sales Salaries and wages Doubtful debts Depreciation motor vehicles Depreciation office equipment Carrying amount of vehicle sold Profit before tax Less: Income tax expense Profit after tax	$	750 000 3 000 603 000 116 360 14 440 6 000 800 2 400		$	753 000 743 000 10 000 4 200 5 800

Additional information

(a) A dividend was paid during the year.

(b) The terms of the bank bills do not exceed 90 days.