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Statements of Financial Position for Tyler Ltd as at 30 June 2021 and 30 June 2020 are provided below: Tyler Ltd Statement of Financial Position

Statements of Financial Position for Tyler Ltd as at 30 June 2021 and 30 June 2020 are provided below:

Tyler Ltd

Statement of Financial Position as at 30 June

2021

2020

Assets

$

$

Cash at bank

110,000

38,400

Accounts Receivable

92,800

35,000

Inventory

112,500

102,850

Prepaid Expenses

18,400

14,000

Machinery and Equipment

310,000

282,500

Less: Accumulated Depreciation

-50,000

-52,000

Total Assets

593,700

420,750

Liabilities

Accounts Payable

92,000

67,300

Accrued Expenses

16,700

17,000

Notes payable

125,000

130,000

Total Liabilities

233,700

214,300

Shareholders' Equity

Share Capital

126,000

101,000

Retained Earnings

234,000

105,450

Total Shareholders' Equity

360,000

206,450

Total Liabilities and Shareholders' Equity

593,700

420,750

The Income Statement of Tyler Ltd for the financial year ended 30 June 2021 is provided below:

Tyler Ltd

Income Statement for the year ended 30 June 2021

$

Sales

372,000

Less:

Cost of sales

130,460

Depreciation Expense

46,500

Other Operating Expense

27,410

Loss on sale of equipment

7,500

Total Expenses

211,870

Profit

160,130

(Question 2 continued on the next page)

QUESTION 2 (Continued)

Additional Information:

  1. New machinery was purchased for cash during the year. No sale of machinery took place during the year.
  2. Equipment having an original cost of $57,500 was sold for cash during the year. Accumulated depreciation of the equipment sold was $48,500 at the point of sale.
  3. Cash dividend was declared and paid during the year.
  4. Additional shares were issued for cash during the year.
  5. All sales and purchases were made on credit throughout the year ending 30 June 2021.
  6. Accounts Payable reflects inventory purchases on credit from suppliers.

REQUIRED:

  1. Prepare a fully classified Statement of Cash Flows for Tyler Ltd for the year ended 30 June 2021, using the direct method to present cash flows.

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