The financial statements for the business of Jets Ski Equipment are shown below. Additional information 1. All


The financial statements for the business of Jet’s Ski Equipment are shown below.

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Additional information 1. All purchases and sales of inventories are on credit.
2. On 1 July 2019, J. Waters injected a further capital contribution of $21 000 cash into the business.
3. During the year, store equipment costing $18 000 with a carrying amount of $15 000 was sold for $6000 cash.
4. Half the land on hand at the beginning of the year was sold for $48 000 cash.
5. During the year, the owner withdrew $6000 from the business bank account in order to pay his personal income tax bill and $300 per week for 50 weeks for private consumption.

(a) Prepare the statement of cash flows for Jet’s Ski Equipment for the year ended 30 June 2020, using the direct method.

(b) Comment on the cash flow position as shown in the entity’s statement of cash flows.

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ISBN: 9780730363224

10th Edition

Authors: John Hoggett, John Medlin, Keryn Chalmers, Beattie Claire, Hellmann Andreas, Maxfield Jodie

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