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QUESTION 21 Vaccination Ltd has provided you with the following information: As at or for the year ended 31 March: 2021 S Sales- Credit Sales - Cash Operating expenses Interest expense Cost of goods sold Depreciation expense Tax expense 2022 S 200 000 56 000 61 240 82 150 000 6 200 2 400 30 000 12 000 48 000 12 000 17 180 Accounts receivable Inventory Equipment - at cost Accumulated depreciation Accounts payable Dividends payable Bank overdraft Long-term borrowings Share capital Retained earnings 42 000 13 000 94 070 18 200 16 390 16 270 13 670 2 200 60 000 22 340 288 2 000 50 000 8 532 Additional information: 1. Vaccination Ltd uses the direct method of reporting cash flows from operating activities. 2. The entity classifies interest expense as a cash flow from financing activities and dividends paid as a cash flow from financing activities. 3. A long-term borrowing repayment of $400 was made during the financial year. 4. Multiple items of equipment were purchased during the financial year, one item purchased at year end cost $4 000. Required: (1) Prepare a Statement of Cash Flows for Vaccination Ltd, in accordance with NZ IAS 7 Statement of Cash Flows, for the year ended 31 March 2022. GST is not applicable. You are required to reconstruct all the general ledger accounts provided in the answer booklet. (11) Determine the dollar effect on cash flows from financing activities if the entity had classi- fied dividends paid as a cash flow from operating activities and not as a cash flow from fi- nancing activities. Question 2 continued: (111) Determine the dollar effect on cash flows from operating activities if the entity had clas- sified dividends paid as a cash flow from operating activities and not as a cash flow from fi- nancing activities. QUESTION 2 (1) Vaccination Ltd Statement of Cash Flows for the year ended 31 March 2022 Cash flows from operating activities: Cash generated from operations Net cash (used)/from operating activities Cash flows from investing activities: Net cash flow (used in) from investing activities Cash flows from financing activities Net cash flow (used in) 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 Check: Question 2 continued: QUESTION 2 (i) General ledger accounts continued: Accumulated depreciation $ (ii) The dollar effect on cash flows from financing activities would be: $ (iii) The dollar effect on cash flows from operating activities would be: Dividends payable S S QUESTION 2 (i) General ledger accounts: Share capital S $ Accounts receivable $ $ RES S $ Accounts payable S $ Equipment $ Inventory S $ QUESTION 2 (i) General ledger accounts continued: LTB $