Additional information:

a. Net profit after tax is $25 270, which included a gain on the sale of plant and equipment of $250 (on plant and equipment that cost $2000).

b. There was no opening or closing balance in dividends payable.

c. Accounts receivable increased by $20 000 during the year.

d. Interest payable at 30 June 2016 was $2154, and at 30 June 2015 was $3712.

Required:
1. How much would retained profits have increased or decreased during the year, assuming no transfers to or from reserves?
2. What were the company's sales for the year?
3. What was the book value of the plant and equipment sold?
4. What was the interest expense for the year?
5. Based only on the information given in the question, list two reasons why net profit would be higher than cash flow from operations.

Transcribed Image Text:

XYZ LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2016 Consolidated 2016 Cash flows from operating activities Cash receipts from customers 389 863 Cash payments to suppliers and employees (375926) Interest received 1572 Interest paid Income taxes paid Net cash used in operating activities Cash flows from investing activities Proceeds from sale of plant and equipment Payments for plant and equipment Purchase of controlled entity Net cash used in investing activities (21514) (14281) (20 286) 375 (12284) (942) (12851) 2015 188739 (304 600) 1368 (13245) (6514) (134 252) 719 (14545) (4 609) (18435)