The following information is available from Gum Ltd's statement of financial position as at 30 June...
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The following information is available from Gum Ltd's statement of financial position as at 30 June 2022: Cash Bank Bills Accounts Receivable Allowance for doubtful debts Inventory Prepayments Equipment Accumulated depreciation - equipment Vehicles Accumulated depreciation - vehicles Land Deferred tax asset Total Assets Accounts payable Provision for employee benefits Other payables Interest payable Dividend payable Current tax liability 2022 S 24,000 20,000 76,000 (6,000) 140,400 38,000 420,000 (82,000) 220,000 (67,000) 380,000 28,000 $1,191,400 96,000 42,000 43,000 40,000 24,000 42,000 2021 S 28,000 20,000 54,000 (4,000) 157,200 26,000 200,000 (40,000) 170,000 (68,000) 380,000 25,600 $948,800 88,000 30,000 46,000 44,000 30,000 48,400 Dividend payable Current tax liability Deferred tax liability Borrowings Total Liabilities Share Capital Retained earnings Total Equity . 24,000 42,000 32,000 300,000 $619,000 480,000 92,400 $572,400 B Additional information: • The Statement of Profit or Loss disclosed the following: Sales $900,000; Gain on sale of vehicle $8,000; Cost of sales $520,000; Distribution costs $102,000; Administration costs $120,000; Interest expense $30,000; Income tax expense $50,000; and, Profit after tax of $86,000. Included in the total for distribution costs was bad debts expense $12,000 and a discount allowed $16,000. • Included in the total for administration costs were depreciation expense on equipment and depreciation expense on vehicles. 30,000 48,400 36,400 160,000 $482,800 400,000 66,000 $466,000 . • A vehicle with a carrying amount of $70,000 and an accumulated depreciation of $30,000 was sold for cash during the year. Vehicles were also purchased during the year. • New equipment was purchased: $140,000 was paid for by borrowing arrangements with the bank and the balance was paid in cash. No equipment was sold. • An interim dividend was paid during the year: $10,000 was paid by way of a bonus share issue, the remainder of the interim dividend was paid in cash. Repayments on borrowings for the year amounted to $40,000. • Gum Ltd uses the direct method for presenting cash flows from operating activities. Required: a) Using formulas or T-accounts, show calculations for all cash inflows and outflows that you will need to disclose in the Statement of Cash Flows for Gum Ltd for the year ended 30 June 2022. (30 marks) b) Prepare a Statement of Cash Flows for the year ended 30 June 2022 for Gum Ltd in accordance with AASB 112 (direct method of presentation for operating activities), including a note to show the composition of Cash and Cash Equivalents. (10 marks) The following information is available from Gum Ltd's statement of financial position as at 30 June 2022: Cash Bank Bills Accounts Receivable Allowance for doubtful debts Inventory Prepayments Equipment Accumulated depreciation - equipment Vehicles Accumulated depreciation - vehicles Land Deferred tax asset Total Assets Accounts payable Provision for employee benefits Other payables Interest payable Dividend payable Current tax liability 2022 S 24,000 20,000 76,000 (6,000) 140,400 38,000 420,000 (82,000) 220,000 (67,000) 380,000 28,000 $1,191,400 96,000 42,000 43,000 40,000 24,000 42,000 2021 S 28,000 20,000 54,000 (4,000) 157,200 26,000 200,000 (40,000) 170,000 (68,000) 380,000 25,600 $948,800 88,000 30,000 46,000 44,000 30,000 48,400 Dividend payable Current tax liability Deferred tax liability Borrowings Total Liabilities Share Capital Retained earnings Total Equity . 24,000 42,000 32,000 300,000 $619,000 480,000 92,400 $572,400 B Additional information: • The Statement of Profit or Loss disclosed the following: Sales $900,000; Gain on sale of vehicle $8,000; Cost of sales $520,000; Distribution costs $102,000; Administration costs $120,000; Interest expense $30,000; Income tax expense $50,000; and, Profit after tax of $86,000. Included in the total for distribution costs was bad debts expense $12,000 and a discount allowed $16,000. • Included in the total for administration costs were depreciation expense on equipment and depreciation expense on vehicles. 30,000 48,400 36,400 160,000 $482,800 400,000 66,000 $466,000 . • A vehicle with a carrying amount of $70,000 and an accumulated depreciation of $30,000 was sold for cash during the year. Vehicles were also purchased during the year. • New equipment was purchased: $140,000 was paid for by borrowing arrangements with the bank and the balance was paid in cash. No equipment was sold. • An interim dividend was paid during the year: $10,000 was paid by way of a bonus share issue, the remainder of the interim dividend was paid in cash. Repayments on borrowings for the year amounted to $40,000. • Gum Ltd uses the direct method for presenting cash flows from operating activities. Required: a) Using formulas or T-accounts, show calculations for all cash inflows and outflows that you will need to disclose in the Statement of Cash Flows for Gum Ltd for the year ended 30 June 2022. (30 marks) b) Prepare a Statement of Cash Flows for the year ended 30 June 2022 for Gum Ltd in accordance with AASB 112 (direct method of presentation for operating activities), including a note to show the composition of Cash and Cash Equivalents. (10 marks)
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Related Book For
Introduction To Financial Accounting
ISBN: 9781526803009
9th Edition
Authors: Anne Marie Ward, Andrew Thomas
Posted Date:
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