Question
*Use the Direct cash flow statement method The financial reports for Apple Supplies Limited are as follows: Comparative Balance Sheet for Apple Supplies Limited as
*Use the Direct cash flow statement method
The financial reports for Apple Supplies Limited are as follows:
Comparative Balance Sheet for Apple Supplies Limited as at 30 June 2019
| 2019 | 2018 |
ASSETS |
|
|
Cash At Bank | 52,000 | 23,000 |
Accounts Receivable | 235,000 | 221,000 |
Inventory | 73,000 | 55,000 |
Prepaid Rent | 6,000 | 5,000 |
Motor Vehicles | 75,000 | 102,000 |
Accum. Depn Motor Vehicles | (22,000) | (32,000) |
| 419,000 | 374,000 |
LIABILITIES |
|
|
Accounts Payable | 91,000 | 82,000 |
Dividend Payable | 13,000 | 15,000 |
Wages Payable | 6,000 | 7,000 |
Tax Payable | 15,000 | 13,000 |
Loan | 80,000 | 52,000 |
| 205,000 | 169,000 |
EQUITY |
|
|
Share Capital | 97,000 | 135,000 |
Retained Earnings | 117,000 | 70,000 |
| 214,000 | 205,000 |
Income Statement for Apple Supplies Limited for the year ended 30 June 2019
Sales |
| 1,200,000 |
COGS |
| (500,000) |
Gross Profit |
| 700,000 |
Profit on sale of Motor Vehicle |
| 2,000 |
Rent | 51,000 |
|
Wages | 530,000 |
|
Interest | 8,000 |
|
Depreciation Motor Vehicles | 13,000 |
|
Profit before Tax |
| 100,000 |
Less Tax Expense |
| (30,000) |
Profit |
| 70,000 |
Additional information:
During the year, a motor vehicle which had cost $27,000 was sold for cash.
Required:
Prepare a Cash Flow Statement (by using the Direct Method) for the year ended 30 June 2019. Show all workings.
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