QUESTION 2: Financial Statement (11 marks] Mr Dinkley owns 'A Page A Day', a well-known and well-stocked bookshop specialising in mystery novels and comic books. He is also a very good friend of Anne Chovi and often refers customers who are holidaying in the Cove to Anne's diving tours. The following Trial Balance for A Page A Day bookshop has been prepared at year end by Mr Dinkley, who likes to keep a hand in the bookkeeping side of the business. A PAGE A DAY AS AT 30 JUNE 2020 Dehit ($) Credit ($) Cash at Eank 15,121 Accrued Rent 400 Allowance for Doubtful Debts 204 Snop Shelving 22,456 Office Operating Expense 17,200 Interest Expense 1,065 Depreciation Exp - Motor vehicle 400 Inventory (1 July 2019) 10,480 Prepaid Insurance 1,518 Freight Inwards Expense 755 Accumulated Depreciation - Shop Shelving 5,800 Discount Received 400 Rent Expense 17,800 Office Furniture and Fittings 6,400 Delivery Expense 360 Accounts Receivable 16,341 Insurance Expense - Office 240 Wages Expense 52,600 Accumulated Depreciation - Motor vehicle 400 Motor Vehicle 8,000 Accounts Payable 3,620 Doubtful Debts Expense 204 Loan (repayable 1 Oct 2027) 9,200 Sales 154,581 Accumulated Depreciation - Office Furniture & Fittings 1,900 Mr Winkley, Capital (1 July 2019) 45,910 Depreciation Exp - Office Furniture & Fittings 640 Mr Dinkley, Drawings 7,200 Advertising Expense 1,815 Sales Returns & Allowances 190 Depreciation Exp - Shop Shelving 1,000 Discount Allowed 230 Purchases 38,400 Totals 220,415 220,415 Mr Dinkley has provided the following additional information to assist you with your statement preparation: The stocktake performed at 30 June 2020 recorded an ending inventory balance of $11,900. The Wages account balance is comprised of $28,930 for Selling & Distribution and $23,670 for Administration. The Rent expense is split 50% for the office premises and 50%% for the shop premises.\fQUESTION 4: Cash Flow Statement (15 marks) Mr Bixby is also a good friend of Anne Chovi's. Mr Bixby owns 'Fly your Kite", a small shop that specialises in making and selling Kites mostly to holiday makers who visit the area but also sells quite a few kites online. Mr Bixby enjoys bookkeeping and does most of the business bookkeeping himself except for Cashflow Statements which he finds quite difficult to do. Anne Chovi has been pleased with the work you have done for her, so she suggested that Mr Bixby ask Jones & Co Accounting Specialists Pty Ltd to prepare the Cashflow Statement for him. You are the graduate accountant working at Jones & Co Accounting Specialists Pty Ltd and are now responsible for preparing the Cashflow Statement for 'Fly your Kite'. You are provided with the following financial information for "Fly Your Kite': FLY YOUR KITE COMPARATIVE BALANCE SHEETS AS AT 30 JUNE 2020 2019 Current Assets Cash on Hand $1 200 $4 000 Cash at Bank 13 623 1 009 Accounts Receivable (net) 19 200 4 500 Inventory 28 000 18 000 Prepaid Expenses 1 650 $63 673 650 $28 159 Non-Current Assets Plant & Equipment 83 500 64 000 less Acc. Depreciation (23 000) 60 500 (17 600) 46 400 Land 80 000 180 000 Total Assets 204 173 254 559 Current Liabilities Bank Overdraft 6 402 Accounts Payable 3 544 2 800 Expenses Payable 780 790 Tax Payable 5 477 16 203 1 200 4 790 Non-Current Liabilities Bank Loan 20 000 20 000 Total Liabilities 36 203 24 790 Net Assets $167 970 $229 769 Equity Capital 167 970 229 769 $167 970 $229 769 (Continued on the next page)FLY YOUR KITE INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2020 Net Sales $145 000 Cost of Sales 45 200 Discount Received 280 Gross Profit: 100 080 Other Revenue: Interest Revenue 52 52 100 132 Expenses: Selling & Admin Expense 23 345 Doubtful Debts Expense 354 Depreciation Expense 5 400 Interest Expense 3 800 32 899 Profit before tax 67 233 Income tax expense 7 965 Profit $59 268 Additional Information . The Land was sold for $100,000 cash.FLY YOUR KITE CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2020 Cash Flows from Operating Activities Receipts from customers Payments to suppliers & employees Cash generated by operations Interest paid Income tax paid Interest received Cash Flows from Investing Activities Purchase of Equipment Proceeds from sale of land Cash Flows from Financing Activities Drawings Net increase / decrease in cash held Cash at the beginning of the year Cash at the end of the year ALL WORKINGS MUST BE PROVIDED, OR THE CASH FLOW STATEMENT WILL RECEIVE NO MARKS (Insert any additional pages as required)