In: Accounting
Abc trading provided following information :-
1. Prepare a Cash Flow Statement from the following information for the year ended 30 June 2021.
2. Prepare a Statement in accordance with AASB 107 reconciling net cash flows from
operating activities to operating profit after income tax.
Borrowed from NAB Bank |
$22,500 |
Cash at the beginning of the year |
$100,050 |
Cash received from Accounts Receivable |
$136,000 |
Cash received from sale of equipment |
$10,000 |
Cash paid for operating expenses |
$36,300 |
Cash sales |
$80,500 |
Credit purchases |
$90,650 |
Current Tax paid |
$15,650 |
Dividends received |
$3,750 |
Depreciation expense |
$13,100 |
Gain on Sale of land |
$1,000 |
Interest Payments |
$5,300 |
Loss on sale of Motor Vehicle |
$3,400 |
Payments for inventory |
$73,770 |
Payment for a new Motor Vehicle |
$22,000 |
Purchase of shares in Blue Limited |
$7,800 |
Sold land for cash |
$45,000 |
Wages Paid |
$29,050 |
Commission received |
$9,700 |
Goodwill impairment |
$14,450 |
Additional Information |
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30/06/2020 |
30/06/2021 |
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Inventory |
$11,500 |
$10,500 |
|
Accounts Payable |
$17,700 |
$21,000 |
|
Prepaid Insurance |
$7,000 |
$5,500 |
|
Proposed Final Dividend |
$7,800 |
- |
|
Provision for annual leave |
$8,000 |
$2,000 |
|
1. Net profit after tax – 50,230 dollars.
2. An item of plant costing $ 60,000 with a carrying value of $16,700 sold during 2020 for $20,000.
3. 25000 Shares issued at 1.50 each (Fully paid on Feb 2021).
4. Abc Trading paid an interim dividend in March 2021 of $4500 and the final proposed dividend from 2020.