Question
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:
- New machinery was purchased for cash during the year. No sale of machinery took place during the year.
- 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.
- Cash dividend was declared and paid during the year.
- Additional shares were issued for cash during the year.
- All sales and purchases were made on credit throughout the year ending 30 June 2021.
- Accounts Payable reflects inventory purchases on credit from suppliers.
REQUIRED:
- 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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started