Question
In: Accounting
The following statement of financial position relates to XYZ Ltd for the years ending 30 June...
The following statement of financial position relates to XYZ Ltd for the years ending 30 June 2019 and 30 June 2020.
|
XYZ Ltd Statement of Financial Position As at 30 June |
||
|
2020 |
2019 |
|
|
Cash at Bank |
$ 43,000 |
$ 42,000 |
|
Accounts Receivable |
34,500 |
96,000 |
|
Inventory |
113,500 |
124,000 |
|
Land |
45,000 |
62,500 |
|
Buildings |
265,000 |
137,500 |
|
Accumulated depreciation – Buildings |
(100,000) |
(85,000) |
|
Plant & Equipment |
40,000 |
40,000 |
|
Accumulated depreciation – Plant & Equipment |
(10,000) |
(5,000) |
|
431,000 |
412,000 |
|
|
Accounts Payable |
67,000 |
60,500 |
|
Interest Payable |
250 |
750 |
|
Accrued Employee Expenses |
3,000 |
8,750 |
|
Mortgage loan payable |
66,250 |
45,000 |
|
Share Capital |
125,000 |
125,000 |
|
Asset Revaluation Reserve – Land |
20,000 |
|
|
Retained earnings |
149,500 |
172,000 |
|
431,000 |
412,000 |
|
Additional Information:
- Gross profit for the year ended 30 June 2020 was $110,500, and consisted of:
Sales Revenue $393,500
Cost of Sales 283,000
- All purchases and sales of inventory were on credit.
- Loss for the year ended 30 June 2020 was $18,750, after deducting expenses of $129,250 from the gross profit figure.
- Expenses of $129,250 comprise of depreciation on Buildings and on Plant & Equipment, a loss on sale of land, $5,000 in interest expense, and other expenses (other expenses relate to Accrued Employee Expenses in the statement of financial position).
- During the year ended 30 June 2020, cash dividends were paid.
- The increase in Buildings was due to building extensions which were paid for during the year, and a block of land costing $37,500 was sold for $31,250 cash.
- No Plant & Equipment was purchased or sold during the year.
- The revaluation increment on land of $20,000 does not have any effect on profit or loss.
Required:
Prepare the statement of cash flows of XYZ Ltd for the year ended 30 June 2020 based on the direct method of presentation. Ignore tax effects. Notes are not required.
Solutions
Expert Solution
| Cash flow statement: Indirect Method | ||
| Cash flows from operating activities: | Working | Amount $ |
| Profit before tax | $ (18,750.00) | |
| Adjustments: | ||
| Depreciation- Building | $ 15,000.00 | |
| Depreciation-Plant & Equipment | $ 5,000.00 | |
| Interest expense | $ 5,000.00 | |
| Loss on sale of land | $ 6,250.00 | |
| Revaluation reserve | $ - | |
| Operating profit from before working capiTotal changes | $ 12,500.00 | |
| Accounts receivable (increase)/decrease | $ 61,500.00 | |
| Inventory (increase)/decrease | $ 10,500.00 | |
| Account payable (decrease)/increase | $ 6,500.00 | |
| Accrued employee exp payable (decrease)/increase | $ (5,750.00) | |
| Cash generation from operation | $ 85,250.00 | |
| Income tax paid | $ - | |
| Net cash provided by operating activities | $ 85,250.00 | |
| Cash flows from investing activities: | ||
| Net proceeds/(Purchase) of Land | $ 31,250.00 | |
| Net proceeds/(Purchase) of Building | $ (127,500.00) | |
| Net proceeds/(Purchase) of plant & equipment | $ - | |
| Net cash used in investing activities | $ (96,250.00) | |
| Cash flows from financing activities: | ||
| Net proceeds/(Repayment))of Issue of Common stock | $ - | |
| Net proceeds/(Repayment))of Mortagage loan payable | $ 21,250.00 | |
| Interest paid | $ (5,500.00) | |
| Dividend paid | $ (3,750.00) | |
| Net cash provided by financing activities | $ 12,000.00 | |
| Net increase in cash | $ 1,000.00 | |
| Opening Cash balance, 2020 | $ 42,000.00 | |
| Closing Cash balance, 2020 | $ 43,000.00 | |
| b) Cashflow from Operating activities under Direct Method | ||
| Cash collection from account receivable | $ 455,000.00 | |
| Cash paid to account payable | $ (266,000.00) | |
| Cash paid for operating expense | $ (103,750.00) | |
| Income tax paid | $ - | |
| Net cash provided by operating activities | $ 85,250.00 | |
| Please do upvote if you found the answer useful. | ||
| Feel free reach in the comment section in case of any clarification or queries. | ||
| Ledger Working | |||||
| Retained earning | |||||
| 2020 | Opening balance | $ 172,000.00 | |||
| 2020 | Net loss | $ 18,750.00 | 2020 | ||
| 2020 | Divident paid | $ 3,750.00 | |||
| 2020 | Closing balance | $ 149,500.00 | |||
| $ 172,000.00 | $ 172,000.00 | ||||
| Account receivable | |||||
| 2020 | Opening balance | $ 96,000.00 | |||
| 2020 | Sales | $ 393,500.00 | 2020 | Cash collected | $ 455,000.00 |
| 2020 | Closing balance | $ 34,500.00 | |||
| $ 489,500.00 | $ 489,500.00 | ||||
| Land | |||||
| 2020 | Opening balance | $ 62,500.00 | 2020 | Sale of land | $ 31,250.00 |
| Revaluation | $ 20,000.00 | 2020 | Loss on sale | $ 6,250.00 | |
| 2020 | Closing balance | $ 45,000.00 | |||
| $ 82,500.00 | $ 82,500.00 | ||||
| Account payable | |||||
| 2020 | Opening balance | $ 60,500.00 | |||
| 2020 | Cash Paid | $ 266,000.00 | 2020 | Purchases | $ 272,500.00 |
| 2020 | Closing balance | $ 67,000.00 | |||
| $ 333,000.00 | $ 333,000.00 | ||||
 ekkarill92 answered 1 year agoRelated SolutionsQuestion 1 The following statement of financial position relates to XYZ Ltd for the years ending...Question 1
The following statement of financial position relates to XYZ Ltd
for the years ending 30 June 2019 and 30 June 2020.
XYZ Ltd
Statement of Financial Position
As at 30 June
2020
2019
Cash at Bank
$
43,000
$ 42,000
Accounts Receivable
34,500
96,000
Inventory
113,500
124,000
Land
45,000
62,500
Buildings
265,000
137,500
Accumulated depreciation – Buildings
(100,000)
(85,000)
Plant & Equipment
40,000
40,000
Accumulated depreciation – Plant & Equipment
(10,000)
(5,000)
431,000
412,000
Accounts Payable
67,000...
On 30 June 2018, the Statement of Financial Position of Emerald Ltd showed the following non-current...On 30 June 2018, the Statement of Financial Position of Emerald
Ltd showed the following non-current asset after charging
depreciation:
Plant
400,000
Accumulated Depreciation
(150,000)
250,000
As of 30 June 2018, the company decided to adopt the revaluation
model for the plant. Therefore, on 30 June 2018, an independent
valuer assessed the fair value of the plant to be $280,000 with a
remaining useful life of 7 years.
On 30 June 2019, the plant was revalued again to its fair...
On 30 June 2018, the Statement of Financial Position of Emerald Ltd showed the following non-current...On 30 June 2018, the Statement of Financial Position of Emerald
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depreciation:
Plant
400,000
Accumulated Depreciation
(150,000)
250,000
As of 30 June 2018, the company decided to adopt the revaluation
model for the plant. Therefore, on 30 June 2018, an independent
valuer assessed the fair value of the plant to be $280,000 with a
remaining useful life of 7 years.
On 30 June 2019, the plant was revalued again to its fair...
Spear Ltd reported the following information in its statement of financial position at 30 June 2020:...Spear Ltd reported the following information in its statement of
financial position at 30 June 2020:
Plant
$325 000
Accumulated depreciation –
plant (75 000)
Intangible
assets
150 000
Accumulated
amortisation
(50 000)
Land
150 000
Total non-current
assets
500 000
Cash
25 000
Inventory
90000
Total current
assets
115 000
Total
assets
$615 000
Liabilities
75 000
Net
assets
$540 000
At 30 June 2020, Spear Ltd...
GCA Ltd reported the following information in its statement of financial position at 30 June 2020:...GCA Ltd reported the following information in its statement of
financial position at 30 June 2020:
Plant $650,000
Accumulated
depreciation –
plant (150,000)
Intangible
assets 300,000
Accumulated
amortisation (100,000)
Land 300,000
Total
non-current
assets 1,000,000
Cash 50,000
Inventory 180,000
Total
current
assets 230,000
Total
assets $1,230,000
Liabilities 150,000
Net
assets $1,080,000
At 30 June 2020, GCA Ltd analysed the internal and external
sources of information that would indicate deterioration in the
worth of its assets. It determined that there were indications of
impairment. GCA Ltd calculated the recoverable amount of the assets...
Peppermint Ltd went into voluntary liquidation on 30 June 2020. A statement of financial position prepared...Peppermint Ltd went into voluntary
liquidation on 30 June 2020. A statement of financial position
prepared at that date was as follows:
------------------------------------------------------------------------------------------------------------------------
Peppermint Ltd
Statement of Financial
Position as at 30 June 2020
Current Assets
Cash
$11,000
Inventories
85,700
Total Current
Assets
96,700
Non-current
Assets
Equipment
142,800
Land and
Buildings
70,000
Total Non-current
Assets
212,800
Total
Assets
309,500
Current
Liabilities
Accounts
Payable
40,000
Total Current
Liabilities
40,000
Non-current
Liabilities
Mortgage (secured over Land and
Buildings)
80,000
Total Non-current
Liabilities ...
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Owners’ equity 6,020,000 3,250,000 5,470,000 3,200,000 Annual sales
Net profit (after tax) Weighted average number of ordinary shares
issued 6,100,000 810,000 10,234,518 3,154,350 475,200 10,046,430
Required: Calculate the net profit margin, asset turnover, earnings
per share and debt to total assets ratios for ABC Ltd for the year
ended 30 June Year 3
Boom Ltd has the following comparative data. BOOM LTD Statement of financial position as at 30...
Boom Ltd has the following comparative data.
BOOM LTD
Statement of financial position as at 30
June
2020
2019
$
$
Cash
20,280
30,990
Receivables (net)
62,860
58,170
Inventories
57,620
49,680
Property, plant and equipment (net)
205,470
175,370
346,230
314,210
Accounts payable
52,350
60,350
Loan payable (15%)
96,000
96,000
Share capital, $10 each
135,000
121,000
Retained earnings
62,880
36,860
346,230
314,210
Additional information for 2020:
1
Profit
was $20,870
2
Sales on account were $371,600. Sales
returns and allowances amounted to $31,500...
Boom Ltd has the following comparative data. BOOM LTD Statement of financial position as at 30...
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BOOM LTD
Statement of financial position as at 30
June
2020
2019
$
$
Cash
19,980
29,550
Receivables (net)
64,720
59,020
Inventories
61,910
52,060
Property, plant and equipment (net)
200,600
174,340
347,210
314,970
Accounts payable
49,160
58,060
Loan payable (15%)
102,000
102,000
Share capital, $10 each
136,000
119,000
Retained earnings
60,050
35,910
347,210
314,970
Additional information for
2020:
1.
Profit
was $19,160
2.
Sales on account were $375,100. Sales
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Statement of financial position as at 30
June
2020
2019
$
$
Cash
20,050
29,380
Receivables (net)
63,560
57,190
Inventories
59,200
51,300
Property, plant and equipment (net)
207,980
179,170
350,790
317,040
Accounts payable
47,670
57,610
Loan payable (15%)
99,000
99,000
Share capital, $10 each
138,000
118,000
Retained earnings
66,120
42,430
350,790
317,040
Additional information for
2020:
1
Profit was
$19,120
2
Sales on account were $376,000. Sales
returns and allowances amounted to...
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