Question
Question 4 [15 marks] LunarCompany(Pty) Ltds balancesheetsforthelast twoyears areprovidedbelow BalanceSheets Cash 2013 R82,000 2012 R40,000 Accounts Receivable 180,000 150,000 Inventory 170,000 200,000 Equipment 200,000 140,000
Question 4 [15 marks]
LunarCompany(Pty) Ltds balancesheetsforthelast twoyears areprovidedbelow
BalanceSheets
Cash
2013
R82,000
2012
R40,000
Accounts Receivable
180,000
150,000
Inventory
170,000
200,000
Equipment
200,000
140,000
Accum. Depreciation
(72,000)
(60,000)
Total Assets
R560,000
R470,000
AccountsPayable L/TNotespayable
R100,000 100,000
R80,000
50,000
OrdinaryShares
250,000
250,000
RetainedEarnings
110,000
90,000
Total Liabilities &
ShareholdersEquity
R560,000
R470,000
The companys income statementfor2013 isprovidedbelow:
Income Statement2013
SalesR345,000
Expenses:
Costof GoodsSoldR120,000
Operating Expenses 58,000
Depreciation Expenses 20,000
Interest Expense2,000
200,000
OperatingIncome 145,000
GainonSale--Equipment* 5,000
IncomebeforeTaxes150,000
TaxExpense30,000
Net IncomeR120,000
*The companysoldequipmentforR57,000thathadacostof R60,000
Required:
Preparethecompanys StatementofCashflowsfor2013. Usethedirectmethodof computingcashflows fromoperatingactivities.
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The Audit Process Principles Practice And Cases
Authors: Iain Gray, Stuart Manson
5th Edition
1408030497, 9781408030493
