Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following financial information relates to Bunney Ltd. All sales and purchases of inventory at Bunney are on credit. There were no non-current asset disposals

image text in transcribed
The following financial information relates to Bunney Ltd. All sales and purchases of inventory at Bunney are on credit. There were no non-current asset disposals in 2019 or 2020. Other expenses indude depreciation expense of $ 48 000. Bunney Ltd Comparative Statements of Financial Position as at 30 June 2019 2020 Assets Cash at bank $ 31 000 $ 45000 Accounts receivable 78 000 69 000 Inventory 120 000 180 000 Property, plant and equipment (net) 170 000 162 000 Total Assets 399 000 456 000 Liabilities Accounts payable 73 000 71000 Other accrued expenses - current 24 000 19 000 Total Liabilities 97 000 90000 Net Assets 302 000 366 000 Equity Share capital 200 000 200 000 Retained earnings 102 000 166 000 Total Equity $ 302 000 $ 366 000 Bunney Ltd Income Statement For the year ended 30 June 2020 Sales Cost of sales GROSS PROFIT Expenses: Other expenses PROFIT $ 950 000 ( 630 000) 320 000 (188 000 $ 132 000 Required: (a) Calculate the amount of "Cash paid to suppliers, employees and others that would be disclosed in the Statement of Cash Flows for the year ended 30 June 2020. Show full workings. (12 marks) (b) Calculate the net cash flow from investing aditivites, clearly indicate whether the net result is a cash inflow or cash outflow. Show full workings. (4 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management For Nurse Managers Merging The Heart With The Dollar Merging The Heart With The Dollar

Authors: J. Michael Leger, Janne Dunham-Taylor

4th Edition

1284127257, 978-1284127256

More Books

Students also viewed these Finance questions