Question
The following are the internal financial statements of Plum Ltd for the year ended 30 June, 2019. Plum Ltd Internal Balance Sheet as at 30
The following are the internal financial statements of Plum Ltd for the year ended 30 June, 2019.
Plum Ltd
Internal Balance Sheet
as at 30 June, 2019
2019
2018
$
$
Current Assets
Cash at Bank
2 000
24 000
Accounts Receivable
8 800
13 000
Inventory
15 000
18 000
Prepaid Operating Expenses
700
400
Total Current Assets
26 500
55 400
Non-Current Assets
Land
57 000
30 000
Equipment
63 000
58 300
Accumulated Depreciation - Equipment
(12 000)
(13 000)
Total Non-Current Assets
108 000
75 300
Total Assets
134 500
130 700
Current Liabilities
Accounts Payable
14 000
13 000
Accrued Interest Payable
500
700
Accrued Operating Expenses Payable
800
1 000
Income Tax Payable
4 200
6 000
Dividends Payable
10 000
8 000
Total Current Liabilities
29 500
28 700
Non-Current Liabilities
Long-term Loan
30 000
60 000
Total Liabilities
59 500
88 700
Shareholders' Equity
Share Capital
70 000
30 000
Retained Profits
5 000
12 000
Total Shareholders' Equity
75 000
42 000
Total Liabilities and Equity
134 500
130 700
Plum Ltd
Internal Income Statement
For the year ended 30 June 2019
$
Sales Revenue
160 000
Less Cost of Goods Sold
105 000
Gross Profit
55 000
Add Other Income:
Gain on Sale of Equipment
5 000
60 000
Less Expenses:
Interest Expense
1 000
Depreciation - Equipment
6 000
Operating Expenses
33 000
Income Tax Expense
4 000
44 000
Net Profit After Tax
16 000
Reconciliation of Retained Profits
Retained Profits, 1 July 2018
12 000
Net Profit After Tax
16 000
Bonus Share Issue
(10 000)
Dividends Declared
(13 000)
Retained Profits, 30 June 2019
5 000
Other Information:
During the 2018/19, financial year 10 000 shares were issued in exchange for an area of land valued at $15 000. There was also a bonus share issue of $10 000 and an issue of shares to the general public for cash.
The company bought another area of land for cash.
Equipment that originally cost $18 000 was traded-in for new equipment during the year. No other equipment was bought or sold.
Required
Prepare the company's Statement of Cash Flows for the period ending 30 June, 2019.
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