TATEMENT OF CASH FLOWS

Shown below is an extract from the comparative statements of financial position and statement of profit or loss of Caesar Ltd for the year ended 30 June 2020:

Caesar Ltd
Statement of Financial Position as at 30 June 2020
	30-Jun-20	30-Jun-19
CURRENT ASSETS	$	$
Cash	5,000	-
Bank Deposits at call	20,000	30,000
Accounts Receivable	129,000	110,000
Allowance for Doubtful Debts	(13,000)	(11,000)
Inventories	392,000	375,000
Prepaid Expenses	6,000	12,000
	539,000	516,000
NON-CURRENT ASSETS
Deferred Tax Asset	1,000	4,000
Shares in Cleopatra Ltd	90,000	130,000
Buildings - at cost	400,000	400,000
Accumulated depreciation- buildings	(170,000)	(120,000)
Equipment - at cost	290,000	250,000
Accumulated depreciation- equipment	(100,000)	(85,000)
Land - at cost	450,000	300,000
	961,000	879,000
TOTAL ASSETS	1,500,000	1,395,000
CURRENT LIABILITIES
Bank Overdraft	3,000	39,000
Accounts payable	62,500	75,000
Accrued Expenses	11,000	12,500
Interest Payable	13,000	11,000
Dividend Payable	12,000	25,000
Current tax liability	25,000	32,000
	126,500	194,500
NON- CURRENT LIABILITIES
Deferred Tax Liability	10,500	16,500
Bank Loan (Secured)	65,000	30,000
9% Debentures	175,000	140,000
	250,500	186,500
TOTAL LIABILITIES	377,000	381,000
Share Capital	600,000	550,000
Retained Earnings	523,000	464,000
	1,123,000	1,014,000
TOTAL EQUITY AND LIABILITIES	1,500,000	1,395,000

Caesar Ltd Statement of Profit or Loss for the year ended 30 June 2020 Income Sales 650,000 Interest Revenue 5,000 Gain on sale of shares 3,000 Gain on sale of equipment 12,000 Discount received 11,000 Total Income 681,000 Less: Expenses: Cost of Sales 290,000 Depreciation Expense - Jequipment 35,000 Depreciation Expense - buildings 50,000 Interest Expense 39,000 Bad Debts Expense 11,000 Discount Allowed 4,500 Employee and Other Expenses 100,000 529,500 Profit before Tax 151,500 Income Tax Expense (45,000) Profit for the year 106,500 a. c. e. Additional Information Equipment with a cost of $90,000 and accumulated depreciation of $20,000 was sold for cash. b. During the year land was purchased for cash. Shares in Cleopatra with a cost of $40,000 were sold during the year for cash. d. Debentures were issued for cash. An additional 20,000 ordinary shares were issued for cash at $2.5 per share f. Dividends were paid during the year in cash. g. Repayments of loan principal amounting to $15,000 were made during the year. h. Bank Deposits at Call and Bank Overdraft are to be considered as part of Cash and Cash Equivalents. Required: Prepare a statement of cash flows for Caesar Ltd for the year ended 30 June 2020 using the direct method as required by AASB 107. (20 Marks) Caesar Ltd Statement of Profit or Loss for the year ended 30 June 2020 Income Sales 650,000 Interest Revenue 5,000 Gain on sale of shares 3,000 Gain on sale of equipment 12,000 Discount received 11,000 Total Income 681,000 Less: Expenses: Cost of Sales 290,000 Depreciation Expense - Jequipment 35,000 Depreciation Expense - buildings 50,000 Interest Expense 39,000 Bad Debts Expense 11,000 Discount Allowed 4,500 Employee and Other Expenses 100,000 529,500 Profit before Tax 151,500 Income Tax Expense (45,000) Profit for the year 106,500 a. c. e. Additional Information Equipment with a cost of $90,000 and accumulated depreciation of $20,000 was sold for cash. b. During the year land was purchased for cash. Shares in Cleopatra with a cost of $40,000 were sold during the year for cash. d. Debentures were issued for cash. An additional 20,000 ordinary shares were issued for cash at $2.5 per share f. Dividends were paid during the year in cash. g. Repayments of loan principal amounting to $15,000 were made during the year. h. Bank Deposits at Call and Bank Overdraft are to be considered as part of Cash and Cash Equivalents. Required: Prepare a statement of cash flows for Caesar Ltd for the year ended 30 June 2020 using the direct method as required by AASB 107. (20 Marks)