The following transactions were undertaken by

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The following transactions were undertaken by Porschet Ltd during the financial year ended 30 June 2017. Ignore GST. 1. Issued ordinary shares for cash, $1,500,000. 2. Purchased land to be held for future expansion for $1,150,000 cash. 3. Paid off a long-term $300,000 loan plus interest of $35,000. 4. Sold for $540,000 used cars with a carrying amount of $230,000. 5. Paid cash dividends of $160,000. 6. Purchased machinery factory, giving $120,000 cash and signing a mortgage loan for $360,000. 7. Purchased shares in MBW Ltd to be held as an investment for $360,000 cash. 8. Sold a long-term government bond, with a carrying amount of $100,000, for $173,000, including $14,000 accrued interest. 9. Purchased shares in Forden Ltd to be held as a long-term investment, paying $340,000 cash. 10. Issued 5% debentures for $1,400,000. a) Prepare the net cash flow used in investing activities section of the statement of cash flows using the classification shown in Illustration Example A or IAS/AASB 107 b) Prepare the net cash used in financing activities section of the statement of cash flows using the classification shown in Illustration Example A or IAS/AASB 107 200973 Techniques in Financial Accounting |60 Week 12 Homework: Statement of Cash Flows
End of Chapter Exercise 18.10 The following comparative statements of financial position and income statement are for the business of Bargains Galore Pty Ltd: Bargains Galore Pty Ltd Comparative statements of financial position as at 30 June 2016 2017 Assets Cash at bank $15,000 $27,000 Accounts receivable 78,000 63,000 Inventory 52,000 69,900 Prepaid expenses 45,000 37,000 Plant and equipment 620,000 664,000 Accumulated depreciation — plant and equipment (170,000 ) (220,000 ) $640,000 $640,900 Liabilities and equity Accounts payable $136,000 $101,000 Expenses payable 23,000 35,000 Current tax liability 49,000 42,000 Share capital 300,000 300,000 Retained earnings 132,000 162,900 $640,000 $640,900 Bargains Galore Pty Ltd Income statement for year ended 30 June 2017 Income Sales revenue $810,000 Expenses Cost of sales $413,100 Wages and salaries 162,000 Depreciation — plant and equipment 50,000 Other expenses 80,000 Income tax expense 45,000 750,100 Profit 59,900 Additional information a) All sales and purchases of inventory are on credit. b) Income tax is paid in one instalment during the year. c) A dividend had been paid to shareholders. d) Additional plant had been acquired for a cash outlay. 200973 Techniques in Financial Accounting |61
a) Prepare the statement of cash flows for the company for the year ended 30 June 2017. Use the direct method. 200973 Techniques in Financial Accounting |62
End of Chapter Problem 18.6 The following data relate to Emporium Ltd: Emporium Ltd Income statement for year ended 30 June 2017 Income Sales revenue $1,205,000 Expenses Cost of sales $750,000 Depreciation — machinery 20,000 Depreciation — buildings 17,000 Other expenses 328,000 1,115,000 Profit $90,000 Emporium Ltd Comparative statements of financial position as at 30 June 2016 2017 Assets Cash at bank $60,000 $10,000 Accounts receivable 140,000 137,000 Inventory 115,000 135,000 Investments 16,000 21,000 Machinery (net) 250,000 330,000 Buildings (net) 110,000 193,000 Land 67,000 142,000 $758,000 $968,000 Liabilities and equity Accounts payable $69,500 $84,500 Expenses payable 7,000 2,000 Mortgage payable 135,000 224,000 Share capital 375,000 438,000 200973 Techniques in Financial Accounting |63
Retained earnings 171,500 219,500 $758,000 $968,000 Additional information a) Dividends were paid during the year.

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