Following are extracts from the accounting records of Shellfish Ltd at 30 June 2020: Shellfish Ltd...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Following are extracts from the accounting records of Shellfish Ltd at 30 June 2020: Shellfish Ltd 2019 2020 ($000) ($000) Items from balance sheet as at 30 June 2020 Assets Cash Trade receivables Allowance for doubtful debts Inventory Land Plant Accumulated depreciation Total Assets Liabilities Accounts payable Interest payable Borrowings Equity Share capital Retained earnings Total liabilities and equity Sales (all on credit) Cost of sales 570 150 Gain on disposal of land Doubtful debt expenses Wages and salaries Depreciation expense Interest expense Net Profit (15) 200 200 200 (100) 1,205 150 50 250 350 405 1,205 1,030 300 (20) 320 100 250 (150) 1,830 250 10 550 Items from income statement for the period ending 30 June 2020 400 620 1,830 ($000) $500 (150) 30 (80) (10) (50) (25) 215 Other information: ● Land with a carrying value of $100,000 is sold with a gain of $30,000 during the year. No plant is sold or scrapped during the year. • Assume there are no cash sales, income taxes and dividend payments during the year. ● Wages and salaries are paid by cash. REQUIRED Prepare a cash flow statement for Shellfish Ltd for the year ending 30 June 2020 using the direct method. Notes are not required. Following are extracts from the accounting records of Shellfish Ltd at 30 June 2020: Shellfish Ltd 2019 2020 ($000) ($000) Items from balance sheet as at 30 June 2020 Assets Cash Trade receivables Allowance for doubtful debts Inventory Land Plant Accumulated depreciation Total Assets Liabilities Accounts payable Interest payable Borrowings Equity Share capital Retained earnings Total liabilities and equity Sales (all on credit) Cost of sales 570 150 Gain on disposal of land Doubtful debt expenses Wages and salaries Depreciation expense Interest expense Net Profit (15) 200 200 200 (100) 1,205 150 50 250 350 405 1,205 1,030 300 (20) 320 100 250 (150) 1,830 250 10 550 Items from income statement for the period ending 30 June 2020 400 620 1,830 ($000) $500 (150) 30 (80) (10) (50) (25) 215 Other information: ● Land with a carrying value of $100,000 is sold with a gain of $30,000 during the year. No plant is sold or scrapped during the year. • Assume there are no cash sales, income taxes and dividend payments during the year. ● Wages and salaries are paid by cash. REQUIRED Prepare a cash flow statement for Shellfish Ltd for the year ending 30 June 2020 using the direct method. Notes are not required.
Expert Answer:
Answer rating: 100% (QA)
Cash flow from operating Activities Cash Received fream Customer sales SHELLFISH LTD Statement ... View the full answer
Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-1259692406
18th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
Posted Date:
Students also viewed these accounting questions
-
The following information was drawn from the accounting records of Spartan Company as of December 31, 2010, before the temporary accounts had been closed. The Cash balance was $3,000, and Notes...
-
The following information was taken from the accounting records of the Lamberson Company: Additional information for the year: (a) Sales ............$ 39,930 Cost of goods sold .........(19,890)...
-
The following amounts were taken from the accounting records of Lisko Services, Inc., as of December 31, 2007. Lisko Services began its operations on January 1, 2007. Capital stock ........... $...
-
Analyze how you will use the challenge the process and enable others to act practices to improve the three leadership areas that you selected in module one. ? select one leadership theory or approach...
-
Explain how an increase in your nominal income and a decrease in your real income might occur simultaneously. Who loses from inflation? Who loses from unemployment? If you had to choose between (a)...
-
Based on a Pitney Bowes survey, when 1009 consumers were asked if they are comfortable with drones delivering their purchases, 42% said yes. Consider the probability that among 30 different consumers...
-
Refer to Exercise 5. a. Is the multiple regression equation useful for prediction? Explain. Use the = 0.05 level. b. Is the multiple regression equation useful for prediction? Explain. Use the =...
-
(a) Belinda believes that the couple could maintain their current level of living if their retirement income represented 75 percent of their current annual income after adjusting for inflation....
-
Master Answer is not complete. Flexible Budgets Volume Variances Budget Number of units Sales revenue 35,000 34,000 36,000 $ 1,291,500 $ 1,254,600 $ 1,328,400 $ 36,900 Favorable Variable...
-
Moravanti Italian Imports has four employees and pays biweekly. On Form W-4, complete Step 2, the Multiple Jobs Worksheet (when applicable) to obtain the amount for Step 4(c). Calculate the federal...
-
Assume South Park is initially closed to trade. Domestic supply and demand for winter hats is given by the following equations: D = 60 - 4P, S = 2P - 6. a. Suppose South Park opens up to trade and...
-
On January 1, 2023, Oriole Ltd. (a public company) had the following shareholders' equity accounts: Preferred shares, $5 non-cumulative, unlimited number authorized, none issued Common shares,...
-
The December bank statement and cash T-account for Stewart Company follow: BANK STATEMENT Date Checks Deposits Other December 1 Balance $ 48,000 December 6 $ 7,620 40, 380 December 11 December 17 550...
-
1. What is the difference between invitation to treat and offer? 2. Explain the statement "acceptance must be absolute and unqualified." Question 3 Ali goes to the convenience store to buy a can of...
-
The following cost and inventory data were taken from the records of the Beca Company for the year 2022: Costs incurred: Depreciation, factory equipment 24,000 Depreciation, office equipment 7,500...
-
On March 31, a company takes a short position in May futures on 100,000 bu of corn at $4.663/bu. The size of one contract is 5,000 bu. The initial margin is $3,894 per contract and the maintenance...
-
The following function has a bug and doesn't work as expected. What is the issue with this function and how will you fix it? //lfx is greater than y, this function should return 1. //Else, this...
-
What are current assets and current liabilities? How are they different from non-current assets and non-current liabilities?
-
Norton Chemical Company produces two products: Amithol and Bitrite. The company uses activity-based costing (ABC) to allocate manufacturing overhead to these products. The costs incurred by Nortons...
-
Monark Electronics uses job order costing and applies manufacturing overhead to individual jobs by using predetermined overhead rates. In Department A, overhead is applied on the basis of machine...
-
Assume you have just been hired as the management accountant in charge of providing your firms managers with product information. What activities might you undertake if you were participating in the...
-
Find the area under the standard normal curve to the right of a. z = 0.47 b. z = 2.91 c. z = 2.04 d. z = 1.09
-
Find the area under the standard normal curve that lies outside the interval between a. z = 0.38 and z = 1.02 b. z = 1.42 and z = 1.78 c. z = 0.01 and z = 2.67 d. z = 2.45 and z = 0.34
-
Find the area under the standard normal curve that lies outside the interval between a. z = 1.11 and z = 3.21 b. z = 1.93 and z = 0.59 c. z = 0.46 and z = 1.75 d. z = 2.73 and z = 1.39
Study smarter with the SolutionInn App