Opposite are the comparative statements of financial

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Opposite are the comparative statements of financial position of Cresta Ltd as at 30 June 2016 and 2017, and the income statement and statement of changes in equity for the year ended 30 June 2017. Additional information (a) Other expenses include $66 000 depreciation expense on machinery and insurance expense of $10 500. (b) All sales and purchases are on credit. (c) Rental income is earned as a result of renting part of the property that is in excess of the company’s needs.Required Prepare the cash flows from operating activities only for Cresta Ltd for the year ended 30 June 2017, using the direct method. Ignore taxes. CRESTA LTD Comparative Statements of Financial Position as at 30 June 2016 2017 ASSETS Cash at bank Accounts receivable Inventory Prepaid insurance Property Machinery Accumulated depreciation: machinery $ 19 500 112 500 198 000 10 500 134 400 900 000 (201 000) $ 69 000 100 500 246 000 7 500 120 000 1 080 000 (243 000) $1 173 900$1 380 000LIABILITIES AND EQUITY Accounts payable Interest payable Other accrued expenses Mortgage payable Share capital Retained earnings $ 66 000 10 200 13 500 360 000 300 000 424 200$ 75 000 9 000 21 000 435 000 510 000 330 000$1 173 900$1 380 000CRESTA LTD Income Statement for the year ended 30 June 2017 Sales Less: Cost of sales $1 260 000 843 000GROSS PROFIT 417 000 Add: Other income: Lease income Gain on the sale of machinery $ 22 500 27 00049 500466 500 Less: Expenses: Interest expense Loss on the sale of property Other expenses 34 500 30 000 321 000385 500PROFIT $ 81 000
CRESTA LTD Statement of Changes in Equity for the year ended 30 June 2017 Share capital Other reservesRetained earnings Total Balance at 1/7/16 Total comprehensive income for the period Dividends Issue of share capital $300 000 210 000 $424 200 81 000 (175 200) $724 200 81 000 (175 200) 210 000Balance at 30/6/17 $510 000$330 000$840 000CRESTA LTD Statement of Cash Flows (Extract) for the year ended 30 June 2017 Cash flows from operating activities: Cash receipts from customers $1 272 000 Cash paid to suppliers and employees (1 126 500) Cash generated from operations 145 500 Lease income 22 500 Interest paid (35 700) Net cash from operating activities $132 300 Workings: Cash receipts from customersAccounts Receivable Balance b/d 112 500 Cash from customers 1 272 000 Sales 1 260 000 Balance c/d 100 500 1 372 500 1 372 500 Cash paid to suppliersCash payments for purchasesInventory Balance b/d 198 000 Cost of Goods sold 843 000 Purchases 891 000 Balance c/d 246 000 1089 000 1089 000 Accounts Payable Cash paid 882 000 Balance b/d 66 000 Balance c/d 75 000 Purchases 891 000 957 000 957 000 Other Accrued Expenses Cash paid 237 000 Balance b/d 13 500
Balance c/d 21 000 Other expenses* 244 500 258 000 258 000 *Other expenses = $321 000 $66 000 (depreciation) $10 500 (insurance) = $244 500 Prepaid Insurance Balance b/d 10 500 Insurance expense 10 500 Cash paid 7 500 Balance c/d 7 500 18 000 18 000 Cash paid to suppliers and employees = $882 000 (inventory) + $237 000 (other expenses) + $7500 (prepaid insurance) = $1 126 500 Interest Payable Cash paid 35 700 Balance b/d 10 200 Balance c/d 9 000 Interest expense 34 500 44 700 44 700
Exercise 18.14 Statement of cash flows for a company Some of the most recent financial statements for Barium Pty Ltd are shown below: HYLAND PTY LTD Comparative Statements of Financial Position as at 30 June 2017 2018 ASSETS Cash at bank Accounts receivable Inventory Sales equipment

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