Question

You are provided with the following financial information for ‘Don Store Pty Ltd’, a business selling cosmetics for women in the South Africa.

Don Store PTY LTD    COMPARATIVE BALANCE SHEETS      AS AT JUNE 30                                                                                  2020                            2019                 Current Assets Cash on Hand $2 400 $8 000 Cash at Bank 870 2 018 Accounts Receivable (net) 19 464 9 000 Inventory 56 000    36 000 Prepaid Expenses 3 300 $82 034 1 300 $56 318 Non-Current Assets Plant and Equipment 167 000 128 000 less Acc. Depreciation (46 000) 121 000 (35 200) 92 800 Land 160 000    360 000 Total Assets 363 034 509 118 Current Liabilities Bank Overdraft 12 804 - Accounts Payable 6 470 5 600 Accrued Expenses 1 560 1 580 Tax Payable 2 620 23 454 2 400 9 580 Non-Current Liabilities Bank Loan 40 000 40 000 Total Liabilities 63 454 49 580 Net Assets $299 580 $459 538 Equity Capital 299 580 459 538 $299 580 $459 538

Don Store PTY LTD                                                      INCOME STATEMENT                                              FOR THE YEAR ENDED JUNE 30, 2020 Net Sales $230 464 Cost of Sales 90 400 Less: Discount received 560 89 840 Gross Profit: 140 624 Other Revenue: Interest received     80 140 704 Expenses: Selling & Admin Expense 38 000 Doubtful Debts Expense 708 Depreciation Expense 10 800 Interest Expense 7 600 57 108 Profit before tax 83 596 Income tax expense 7 596 Profit $76 000

• Additional Information
• Land was sold for $200,000 cash during the year.

REQUIRED: Prepare a statement of cash flows in the table given below. You must show all calculations.

RIDE YOUR BIKE PTY LTD

CASH FLOW STATEMENT

FOR THE YEAR ENDED 30 JUNE 2020

	$	$
Cash Flows from Operating Activities
Receipts from customers
Payments to suppliers & employees
Cash generated by operations
Interest received
Interest paid
Income tax paid
Cash Flows from Investing Activities
Payment for plant and equipment
Proceeds from sale of land
Cash Flows from Financing Activities
Proceeds from loan
Drawings
Net increase / decrease in cash held
Cash at the beginning of the year
Cash at the end of the year

Answer 1