Question;Practical Question: (10 marks)ABC Limited?s Balance Sheet as at 30 June 2013 and 2014 were as follows:ABC Limited?s Balance Sheet as at 30 June2014ASSETSCurrent AssetsPetty CashAccounts ReceivableProvision for Doubtful DebtsInventory2013150100,000(10,000)152,750242,90010053,750(5,000)91,250140,10012,50030,000(17,500)150,000(27,750)147,250390,1505,00030,000(15,000)103,500(13,500)110,000250,10086,25014,6507,500108,40029,50018,1003,00050,600Owners? EquityShare CapitalAsset Revaluation ReserveGeneral ReserveRetained ProfitsTotal Equity192,5007,50042,50039,250281,750150,00025,00024,500199,500TOTAL LIABILITIES AND OWNERS? EQUITY390,150250,100Non-Current AssetsLandBuildingsAccumulated Depreciation ? buildingsPlant & EquipmentAccumulated Depreciation ? plant & equipmentTOTAL ASSETSLIABILITIES AND OWNERS? EQUITYCurrent LiabilitiesBank OverdraftAccounts PayableCurrent Tax PayableAYB200 Financial AccountingTutorial 11The company?s Income Statements for the year ended 30 June 2013 and general ledger revealed the following information:$Net SalesCost of Goods soldGross ProfitProceeds from sale of plant & equipmentDiscount receivedGross profitExpenses:Carrying amount of equipment soldSalaries and wages expenseDepreciation expense - buildingsDepreciation expense - plant & equipmentElectricity expenseDoubtful debts expenseNet Profit before taxIncome tax expenseNet Profit after tax22,50030,1252,50019,2501,50015,000$275,000138,500136,50023,750375160,62590,87569,75026,25043,500Additional Information:1. Plant and equipment which had originally cost $27,500 and had been depreciated by $5,000, was sold during the year for $23,7502. The company pays income tax in one payment.3. The land was revalued upwards during the year by $7,500.4. During the year, a dividend of $11,250 was paid. ABC Limited classifies dividends paid as a financing activity.5. All purchases and sales were made on credit.Required:Prepare the ?Cash flows from Operating Activities? part of the Cash Flow Statement for the year ended 30 June 2014, in accordance with AASB 107. You may use the reconstruction of the T-accounts or formula method. Show all workings.
Paper#42378 | Written in 18-Jul-2015Price : $20