Top Ltd's income statement for the year ended 30 June 2020 and the comparative statements of financial position as at 30 June 2019 and 2020 are presented below. All sales and purchases of inventory are on credit. Depreciation expense for the year: $25 000, included in Other expenses. Sales Top Ltd Income Statement for the year ended 30 June 2020 Cost of sales GROSS PROFIT Expenses: Other expenses PROFIT 2020 $ 750 000 520 000 230 000 135 000 $ 95 000 Top Ltd Comparative Statements of Financial Position as at 30 June 2019 2020 Assets Cash at bank $ 25 000 $ 13 000 Accounts receivable 44 000 Inventory 120 000 58 000 180 000 Property, plant and equipment (PPE; at cost) 77 000 99 000 Accumulated depreciation - PPE (15 000) (17 000) Total Assets 251 000 333 000 Liabilities Accounts payable Other accrued expenses Total Liabilities Net Assets 37 000 44 000 18 000 23 000 55 000 67 000 196 000 266 000 Equity Share capital Retained earnings Total Equity 154 500 220 000 41 500 46 000 $ 196 000 $ 266 000 Required (a) Calculate "Cash receipts from customers" as would be disclosed in the section of cash flows from operating activities in the statement of cash flows for for the year ended 30 June 2020. Show full workings. (b) Calculate "Cash payment to suppliers, employees and other expenses" as would be disclosed in the section of cash flows from operating activities in the statement of cash flows for for the year ended 30 June 2020. Show full workings. |