QUESTION $5 (10 + 5 = 15 marks) The following information was taken from the comparative financial statements of Rosso's Hardware Store prepared on an accrual basis: ROSSO'S HARDWARE STORE Comparative Financial Statements 2013 2012 Sales revenue $810 000 $870 000 $340 000 $319 500 $333 000 $180 000 Cost of sales Expenses (including Depreciation Expense of $63 000 p.a.) Profit Year-end accounts receivable Year-end inventory Year-end accounts payable Year-end wages payable $315 000 $175 500 $150 000 $166 500 $117 000 $137 000 $ 70 000 $ 76 500 $ 22.500 $ 35 000 Required Part (a) - Prepare a schedule to show the net cash flow provided by Operating Activities during 2013 in accordance with AASB 107 - Cash Flow Statements. Assume there is no income tax, GST or write-off of bad debts. Part (b) - Classify the following items into either Operating, Investing or Financing Activities and indicate whether they represent a Cash Inflow or Cash Outflow. (If any item does not appear in the Cash Flow Statement, this should be specified in your answer.) 1. Cash Received from Debtors $753,000. 2. Shares Issued to Shareholders $500,000. 3. Purchase of new Equipment $150,000. 4. Amortisation of Patents $36,000. 5. Repayment of Mortgage Loan $200,000. 6. Sale of Land & Buildings $900,000. 7. Payment of Wages $85,000. 8. Interest received on Term Deposits $7,000. 9. Cash paid to Creditors $333,000. 10. Depreciation of Motor Vehicles $29,000