Question
Question - The balances in the accounts of Hippo Ltd at 30 June 2019 and 30 June 2020 were: 2020 ($) 2019 ($) Sales (all
Question -
The balances in the accounts of Hippo Ltd at 30 June 2019 and 30 June 2020 were:
| 2020 ($) |
| 2019 ($) |
Sales (all on credit) | 500,000 |
| 700,000 |
Cost of goods sold | 260,000 |
| 220,000 |
Doubtful debts expense | 50,000 |
| 60,000 |
Interest expense | 40,000 |
| 60,000 |
Salaries expense | 60,000 |
| 50,000 |
Depreciation | 20,000 |
| 30,000 |
Cash | 288,000 |
| 278,000 |
Inventory | 360,000 |
| 320,000 |
Accounts receivable | 540,000 |
| 500,000 |
Allowance for doubtful debts | 60,000 |
| 70,000 |
Land | 300,000 |
| 300,000 |
Plant | 200,000 |
| 180,000 |
Accumulated depreciation | 40,000 |
| 60,000 |
Bank overdraft | 40,000 |
| 38,000 |
Accounts payable | 400,000 |
| 380,000 |
Accrued salaries | 44,000 |
| 36,000 |
Long-term loan | 180,000 |
| 140,000 |
Share capital | 240,000 |
| 200,000 |
Opening retained earnings | 614,000 |
| 374,000 |
Other information:
Share capital was increased by the bonus issue of 20,000 shares for $2.00 each out of retained earnings. Plant was acquired during the period at a cost of $60,000, while plant with a carrying amount of $nil (cost of $40,000; accumulated depreciation of $40,000) was scrapped.
Required:
Prepare a statement of cash flows for Hippo Ltd for the year ending 30 June 2020. Ignore tax effects. Fill in each numbered blank with an appropriate number.
Hippo Ltd Statement of Cash Flows For the year ended 30 June 2020 | |||
| $ | $ | |
Cash flows from operating activities |
|
| |
| Receipts from customers | (1) |
|
| Payments to suppliers | (2) |
|
| Payments for accrued expenses (salaries) | (3) |
|
| Interest paid | (4) |
|
| Net cash provided by operating activities |
| (5) |
|
|
|
|
Cash flows from investing activities |
|
| |
| Payment for property, plant and equipment | (6) |
|
| Net cash from investing activities |
| (7) |
|
|
|
|
Cash flows from financing activities |
|
| |
| Proceeds from borrowings | (8) |
|
| Net cash from financing activities |
| (9) |
|
|
|
|
Net increase in cash held |
| (10) | |
Cash at the beginning of the year |
| (11) | |
Cash at the end of the year |
| (12) |
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