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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 flowsusing the classification shown in Illustration Example A or IAS/AASB 107b)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 107200973 Techniques in Financial Accounting |60 Week 12 Homework: Statement of Cash Flows
End of Chapter Exercise 18.10The following comparative statements of financial position and income statement are for the business of Bargains Galore Pty Ltd:Bargains Galore Pty LtdComparative statements of financial positionas at 30 June20162017AssetsCash at bank$15,000$27,000Accounts receivable78,00063,000Inventory52,00069,900Prepaid expenses45,00037,000Plant and equipment620,000664,000Accumulated depreciation — plant and equipment(170,000)(220,000)$640,000$640,900Liabilities and equityAccounts payable$136,000$101,000Expenses payable23,00035,000Current tax liability49,00042,000Share capital300,000300,000Retained earnings132,000162,900$640,000$640,900Bargains Galore Pty LtdIncome statementfor year ended 30 June 2017IncomeSales revenue$810,000ExpensesCost of sales$413,100Wages and salaries162,000Depreciation — plant and equipment50,000Other expenses80,000Income tax expense45,000750,100Profit59,900Additional informationa)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 18.6The following data relate to Emporium Ltd:Emporium LtdIncome statementfor year ended 30 June 2017IncomeSales revenue$1,205,000ExpensesCost of sales$750,000Depreciation — machinery20,000Depreciation — buildings17,000Other expenses328,0001,115,000Profit$90,000Emporium LtdComparative statements of financialpositionas at 30 June20162017AssetsCash at bank$60,000$10,000Accounts receivable140,000137,000Inventory115,000135,000Investments16,00021,000Machinery (net)250,000330,000Buildings (net)110,000193,000Land67,000142,000$758,000 $968,000Liabilities and equityAccounts payable$69,500$84,500Expenses payable7,0002,000Mortgage payable135,000224,000Share capital375,000438,000200973 Techniques in Financial Accounting |63
Retained earnings171,500219,500$758,000 $968,000Additional informationa)Dividends were paid during the year.