Question
Using the information below, complete (i) the operating cash flow section of the Statement of Cash Flows and (ii) the note to the accounts for
Using the information below, complete (i) the operating cash flow section of the Statement of Cash Flows and (ii) the note to the accounts for Trader Ltd. Your presentation must be consistent with the requirements of AASB107 .
The balances of selected accounts of Trader Ltd at 30 June 2019 and 30 June 2020 were ($000):
| 2019 | 2020 |
Sales (on credit) | 7850 | 6380 |
Cost of goods sold | 1450 | 1100 |
Doubtful debts expense | 295 | 325 |
Rent expense | 550 | 470 |
Salaries expense | 830 | 740 |
Depreciation expense | 290 | 180 |
Cash | 3000 | 1100 |
Inventory | 3800 | 4500 |
Accounts receivable | 2200 | 3700 |
Allowance for doubtful debts | 340 | 280 |
Land | 4000 | 4000 |
Plant | 2750 | 2800 |
Accumulated depreciation | 490 | 450 |
Accounts payable | 3200 | 3500 |
Rent payable | 100 | 30 |
Salaries payable | 120 | 90 |
Share capital | 1000 | 1000 |
Additional information:
- net profit after tax for financial year 2020 was $ 3565.
- reporting date is 30 June.
Required:
(i) Trader Ltds operating cash flow section extracted from the Statement of Cash Flows for year ended 30 June 2020
(ii) Reconciliation of net cash by operating activities to net profit
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