Statement of cash flows for sole trader, indirect method

Kim Khan

comparative statements of financial positions

as of 30 June

2019 2020

CURENT ASSETS

cash - $ 540

Accounts receivable $4290 3150

Inventory 6000 6600

Prepaid insurance 300 360

NON- CURRENT ASSETS

Equipment 19200 25500

accumulated depreciation- equipment (6000) (7500)

Land 20400 24000

Motor vehicles 14550 15600

Accumulated depreciation- motor vehicles (5490) (6300)

TOTAL ASSETS 53250 61950

CURRENT LIABILITIES

Bank overdraft 300 -

accounts payable 6150 7950

NON-CURRENT LIABILITIES

Long-term mortgage 14100 18900

TOTAL LIABILITIES = 20550 26850

NET ASSETS

EQUITY

kim khan, capital 32700 35100

TOTAL EQUITY $32700 $35100

KIM KHAN

Income Statement

for the year ended 30 June 2020

Sales $16800

less: Cost of Sales 5100

GROSS PROFIT 11700

Less: Expenses ( including depreciation) 8610

PROFIT $ 3090

Additional information

1. Kim had contributed capital during the year for $6000 cash and had made cash withdrawals during the year. The bank overdraft was considered to be part of the entity's everyday cash management activities.

Required

(a) Prepare a statement of cash flows using the direct method for Kim Khan's business for the year ended 30 June 2020. (LO5)