X2 Question 1 Below is information relating to Tooma Enterprises Ltd for the year ended 31 December 2013. (15 marks) TOOMA ENTERPRISES Comparative Statement of Financial Position as at 31 December 2013 Assets Cash Accounts receivable Inventory Plant Accumulated depreciation Total Assets 2013 2012 $60,000 26,000 36,000 28,000 70,000 140,000 156,000 (60,000) 48,000) $ 244,000 232.000 68,000 $ 58,000 66,000 Accounts payable Income tax payable Long Term Loan Sse capital Total Liabilities and Equity 30,000 40,000 20,000 126,000 106,000 $244,000 $232,000 TOOMA ENTERPRISES Income Statement for the year ended 31 December 2013 Sales Less Cost of Sales Gross Profit Selling expenses Administrative expenses Interest expense Net profit before tax Income tax expense Net profit after tax $ 500,000 360,000 140,000 50,000 38,000 92,000 48,000 14,000 Additional information: 1. The owner withdrew $24,000 cash during the year 2. During the year a machine was sold for $20,000 cash. This machine originally cost $30,000 and had accumulated depreciation of $10,000 at the time of sale. 3. Additional plant was purchased for cash 4. All of the depreciation expense has been recorded in the selling expense category 5. All sales and purchases are on account. 6. Accounts Payable pertains to inventory creditors. Inventory comprises food and liquor sold on cruises. All operating expenses except depreciation are paid in cash 7. Required: Prepare a Statement of Cash Flows for Tooma Enterprises using the direct method