Question
Question 2 The following are the financial statements for the year ended 30 th June 2020. Sales (credit) 500,000 Cost of goods sold (300,00) Gross
Question 2
The following are the financial statements for the year ended 30th June 2020.
|
|
|
|
Sales (credit) |
|
| 500,000 |
Cost of goods sold |
|
| (300,00) |
Gross profit |
|
| 200,000 |
Loss on sale of plant | 5,000 |
|
|
Depreciation buildings | 4,000 |
|
|
Depreciation plant and equipment | 8,000 |
|
|
Bad and doubtful debts | 2,600 |
|
|
Other administrative and selling expenses | 140,000 |
| (159,600) |
Profit before tax |
|
| 40,400 |
Tax expense |
|
| (10,000) |
Profit after tax |
|
| 30,400 |
Dividend Ordinary share |
|
| (20,750) |
Retained profits |
|
| 9,650 |
Earth Ltd Balance Sheet as at 30 June | |||
| 2020 |
| 2019 |
Current assets |
|
|
|
Cash at bank | 55,500 |
| 34,500 |
Accounts receivable | 228,000 |
| 131,000 |
Provision for doubtful debts | (8,000) |
| (6,000) |
Inventory | 55,000 |
| 83,000 |
Non-current assets |
|
|
|
Land | 80,000 |
| 45,000 |
Buildings | 136,000 |
| 112,000 |
Acc. Depreciation - Buildings | (28,000) |
| (24,000) |
Plant and equipment | 114,000 |
| 100,000 |
Acc. Depreciation Plant and equipment | (64,000) |
| (64,000) |
| 568,500 |
| 411,500 |
|
|
|
|
Current liabilities |
|
|
|
Accounts payables | 112,600 |
| 118,000 |
Accrued expenses: Other administrative expenses | 19,000 |
| 12,000 |
Dividend payable | 5,250 |
| 6,500 |
Tax payable | 3,000 |
| 1,000 |
Non-current liabilities |
|
|
|
Debenture | 120,000 |
| 100,000 |
Shareholders equity |
|
|
|
Ordinary shares | 225,000 |
| 120,000 |
Asset revaluation reserve | 20,000 |
| 0 |
Retained earnings | 63,650 |
| 54,000 |
568,500 |
| 411,500 |
Notes:
1. A piece of existing land has been revalued upwards. Two pieces of land were acquired during the year. There was no disposal of land during the year.
2. Plant and equipment costing $33,000 was sold.
3. No buildings were sold during the year.
Required:
Prepare a cash flow statement for the year ended 30 June 2020 as per AASB107 (show all workings).
(12 marks)
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