Question

In: Accounting

Vittoria Ltd requires a Statement of Cash Flows to be prepared for the year ended 31...

Vittoria Ltd requires a Statement of Cash Flows to be prepared for the year ended

31 March 2018, the following information has been collected for this purpose.

Vittoria Ltd Balance Sheets as at 31 March

2017

2018

Cash

$176 000

$239 000

Accounts receivable

220 000

280 000

Allowance for doubtful debts

(30 000)

(40 000)

Inventory

90 000

100 000

Plant and equipment

900 000

1 074 000

Accumulated depreciation

(80 000)

(100 000)

Total assets

$1 276 000

$1 553 000

Accounts payable

80 000

70 000

Interest payable

1 000

2 000

Income tax payable

76 000

88 000

Long term loans

109 000

148 000

Share capital

400 000

500 000

Asset revaluation surplus

-

30 000

Retained earnings

610 000

715 000

Total equity and liabilities

$1 276 000

$1 553 000

Vittoria Ltd SCI for the year ended 31 March 2018:

Sales

$885 000

Less expenses:

   COGS

240 000

  Depreciation expense

90 000

   Interest expense

6 000

   Doubtful debts expense

40 000

   Salaries and wages expense

200 000

   Income tax expense

84 000

  Other expenses

120 000

Profit after tax

105 000

OCI: Revaluation gain

30 000

TCI

$135 000

Additional information:

Vittoria Ltd classifies interest expense and dividends paid as cash outflows from financing activities.

Plant and equipment, with a fair value of $100 000, has been acquired by the issue of

$100 000 worth of fully paid Vittoria Ltd shares to the sellers of the plant and equipment.

During the year, equipment that originally cost $100 000 was sold for $30 000 cash.

Plant and equipment was revalued upwards by $30 000.

A long-term loan of $30 000 was specifically organised for the purchase of plant and equipment costing $30 000.  

Required:

(iii) Prepare a statement of cash flows for Vittoria Ltd, for the year ended 31 March 2018, in accordance with NZ IAS 7 Statement of Cash Flows. Vittoria Ltd uses the directmethod for the cash flows from operating activities (CFOA) section. Complete the necessary reconciliation, as required by NZ FRS-44, to be included in the notes.

      (iii) Vittoria Ltd Statement of Cash Flows for the year ended 31 March 2018

Cash flows from operating activities:        

             $

     Cash generated from operations

         

Net cash (used in)/from operating activities

Cash flows from investing activities

Net cash (used in)/from investing activities

Cash flows from financing activities

  

Net cash (used in)/from financing activities

Net increase/(decrease) in cash and cash equivalents                            

Cash and cash equivalents at beginning of period  

Cash and cash equivalents at end of period       

Reconciliation of net cash from operating activities to profit:

Transactions of a non-cash basis:

Deferrals or accruals of past or future operating cash receipts or payments:

Items of income/expense included in profit and classified as CFIA/CFFA:

CFOA = cash flows from operating activities, CFIA = cash flows from investing activities and CFFA = cash flows from financing activities.        

Solutions

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