The comparative statements of financial position of Hutt Electrical as at 30 June 2019 and 2020 and the income statement for the year ended 30 June 2020 are shown below

Additional information

1. Other expenses include $52 500 depreciation expense.

2. All sales and purchases of inventory are on credit.

Question Required:

a) Calculate the value of Inventory Purchases during 2020.

b) Calculate payments to Inventory Suppliers in 2020.

c) Calculate the value of cash received from Customers in 2020.

d) Calculate the value of cash payments for Other Expenses in 2020.

e) Calculate the value of cash payments for Interest in 2020.

f) Prepare a Statement of Cash Flows from Operating Activities only for Hutt Electrical for the year ended 30 June 2020 using the direct method.

g) Calculate and comment on the companys Profit Margin.

h) Calculate and comment on the companys Current Ratio for the comparative periods 2019 & 2020.

Thank you!

2020 HUTT ELECTRICAL Comparative Statements of Financial Position as at 30 June 2019 ASSETS Cash at bank $ 22 500 Accounts receivable 82 500 Inventory 165000 Prepaid insurance 7500 Property 190 500 Plant and equipment 757500 Accum. depreciation - plant and equipment (102 000) TOTAL ASSETS $1123500 LIABILITIES AND EQUITY Accounts payable 64 500 Interest payable 7500 Other accrued expenses 13500 Mortgage payable 367500 Share capital 500 000 Retained earnings 170500 TOTAL LIABILITIES AND EQUITY $1123 500 $ 69 000 70 500 216 000 1500 172 500 1072 500 (154500) $1447500 75 000 4500 18000 442500 750 000 157500 $1447500 HUTT ELECTRICAL Income Statement for the year ended 30 June 2020 $1047 000 780 000 267 000 Sales Less: Cost of sales GROSS PROFIT Add: Other income: Rent income Gain on sale of property $ 9000 20000 29000 296 000 Less: Expenses: Interest expense Loss on sale of plant Other expenses PROFIT 34 500 6500 231 000 272 000 $ 24000