C show the liability section of the statement of

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(c) Show the Liability section of the Statement of Financial Position as at 30 June 2017. (2 marks) Question Seven: 2 + 4 + 2 = 8 marks
13 QUESTION 8 21 MARKS Pink Apple Ltd presents the following information: Statement of Financial Position as at 30 June 2016 30 June 2016 $’000 30 June 2015 $’000 Current Assets Cash 21,020 Term Deposit 695 595 Accounts Receivable 1,100 880 Allowance for Doubtful Debts (55) (45) Inventories 810 760 Prepaid expenses 125 Total Current Assets 23,695 2,325 Non-Current Assets Motor vehicles 1,500 2,000 Accumulated depreciation of MV (755) (600) Warehouse equipment 4,000 2,500 Accumulated depreciation of WE (550) (300) Land and Buildings 201,615 201,615 Accumulated depreciation of Buildings (85,635) (80,000) Total Non-Current Assets 120,175 125,215 Total Assets 143,870 127,540 Current Liabilities Accounts Payable 402 Accrued expenses 60 Income tax payable 210 160 Bank bill payable 390 Total Current Liabilities 1,062 790 Non-Current Liabilities Loans 129,902 120,070 Total Non-Current Liabilities 129,902 120,070 Total Liabilities 130,964 120,860 Shareholder’s Equity Contributed capital 11,376 6,000 Reserves 1,200 500 Retained Earnings 330 180 Total Equity 12,906 6,680 Total Liabilities and Equity 143,870 127,540 Statement of Financial Performance for the year ending 30 June 2016 Operating Revenue Net Sales $ $93,800 Less Cost of Sales (29,250) Gross Profit 64,550 Less Inventory write-down (2,000) Adjusted Gross Profit 62,550 Operating Expenses Selling expenses 12,000 Administration expenses 7,000 Occupancy expenses 4,000 Bad and doubtful debts 200 Depreciation – Motor Vehicles 350 Depreciation – Warehouse equipment 250 Depreciation – Buildings 5,635 Loss on sale of motor vehicle 25 29,460 Profit before Interest and Taxes 33,090 Interest expense 290 Profit Before Tax 32,800 Tax expense 9,840 Net Profit After Tax 22,960 40 95 550 80 -
14 Other Information: All sales are on credit Prepaid expense relates to selling expense Accrued expenses relate to occupancy expenses The only asset purchase was the warehouse equipment A 6-month bank bill was acquired to partially finance the purchase of the warehouse equipment A 1-for-20 bonus issue was made to shareholders from Retained Earnings A transfer of $700 was made from Retained Earnings to Reserves. The only disposal of a non-current asset relates to the motor vehicle. Required: (NOTE: It is recommended to use T accounts to calculate your answers for (a) and (b).) T accounts are provided on the next page for calculations. (a) Prepare and complete the Cash Flow from Operating Activities Pink Apple Ltd Cash Flow Statement (Extract) for the year ended 30 June 2016 OPERATING ACTIVITIES Receipts from customers Payments to suppliers Payments for other expenses Income tax paid Interest paid Net cash flow from operating activities (5 marks) (b) Prepare and complete the Cash Flow from Investing Activities Pink Apple Ltd Cash Flow Statement (Extract) for the year ended 30 June 2016 INVESTING ACTIVITIES Acquisition of warehouse equipment Proceeds from sale of motor vehicle Net cash flow from investing activities (2 marks)
15 Working accounts: Accounts Receivable Date Details Amount Date Details Amount Allowance for Doubtful Debts Inventory Accounts Payable
16 Prepaid Selling expense Accrued Occupancy expense Income Tax Payable Interest expense Motor Vehicles
17 Accum. Depn. Motor Vehicles Sale of Motor Vehicles Warehouse Equipment Bills Payable

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