Question
STATEMENT OF CASH FLOW (CASH FLOW STATEMENT): Using the information provided by Andrew Smith and Rex Johnson you are required to: REQUIRED ( BSBFIA412: 2.2,
STATEMENT OF CASH FLOW (CASH FLOW STATEMENT):
Using the information provided by Andrew Smith and Rex Johnson you are required to:
REQUIRED (BSBFIA412: 2.2, 2.3, 2.5, and 2.6)
Prepare the Statement of Cash Flow for the year ended 30 June 2019.
The following information is available for the first year of business of Andrew Smith and Rex Johnson.
ANDREW SMITH AND REX JOHNSON
INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2019
| $ | $ |
Sales Revenue |
| 195 000 |
Less Cost of Sales |
| (105 000) |
Gross Profit |
| 90 000 |
Add: Other income: |
|
|
Dividend received | 3 000 | |
|
| 93 000 |
Less: Expenses |
|
|
Advertising | 9 200 |
|
Wages | 28 000 |
|
Insurance | 5 000 |
|
Rent | 8 000 |
|
Other operating expenses | 4 800 |
|
Depreciation Motor vehicle | 3 400 |
|
Depreciation Equipment | 2 600 |
|
|
| (61 000) |
Profit for the year |
| 32 000 |
ANDREW SMITH AND REX JOHNSON
STATEMENT OF FINANCIAL POSITION AT 30 JUNE 2019
| $ | $ |
Assets |
|
|
Non Current Assets |
|
|
Motor Vehicle | 25 000 |
|
Equipment | 30 000 |
|
Investment | 20 000 | |
|
| 75 000 |
Current Assets |
|
|
Inventory | 30 000 |
|
Account receivables (Note 1 ) | 13 000 |
|
Cash | 22 000 |
|
|
| 65 000 |
Total assets |
| 140 000 |
Equity and Liabilities |
|
|
Equity |
|
|
Capital A. Smith | 50 000 |
|
Capital R. Johnson | 37 000 |
|
Retained profits A. Smith | 18 000 |
|
Retained profits R. Johnson | 14 000 |
|
Total Equity |
| 119 000 |
Liabilities |
|
|
Non Current Liabilities |
|
|
Loan |
| 10 000 |
Current Liabilities |
|
|
Account Payables (Note 2) |
| 11 000 |
Total equity and liabilities |
| 140 000 |
Note 1- Account receivables include:
$
Trade receivables 11 000
Insurance prepaid 2 000
Note 2- Account payables include:
$
Trade payables 9 000
Rent due 1 200
Other operating expenses due 800
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