Melanie Ltd requires a Statement of Cash Flows to be prepared for the year ended 31 March 2017; the following information kaa. ketatzaxited for this purpose.

Additional information:

CO During the year ended 31 March 2017 an item of equipment, which originally cost S8 000, was sold.

(ii) Melanie Ltd uses the direct method for presenting cash flows from operating activities. (iii) Classify any dividends paid and interest paid as cash flows from financing activities. c,bauxstat items of plant and equipment were purchased during the year ended 31 March 2017; a long-term liability of $110 000 was specifically arranged for the purchases.

Required:

Prepare a Statement of Cash Flows for Melanie Ltd, for the year ended 31 March 2017, in accordance with AZ/AS 7 Statement ofCash Flows. A reconciliation is required to be prepared. GST is not applicable. All workings, in the form of selected general ledger accounts

Transcribed Image Text:

As at 31 March: Cash Accounts receivable Inventory Prepaid operating expenses Plant and Equipment Accumulated depreciation Accounts payable Long term liabilities Share capital Retained profits For the year ended 31 March: Sales Less expenses: COGS Depreciation expense Interest expense Loss on sale of equipment Operating expenses Profit before tax Less Income tax expense Profit after tax 2017 $55 000 20 000 15 000 5 000 317 000 14 000 34 000 130 000 70 000 164 000 2017 $507 000 150 000 9 000 42 000 3 000 111 000 192 000 47 000 $145 000 2016 $33 000 30 000 10 000 1 000 70 000 6 000 20 000 20 000 50 000 48 000 As at 31 March: Cash Accounts receivable Inventory Prepaid operating expenses Plant and Equipment Accumulated depreciation Accounts payable Long term liabilities Share capital Retained profits For the year ended 31 March: Sales Less expenses: COGS Depreciation expense Interest expense Loss on sale of equipment Operating expenses Profit before tax Less Income tax expense Profit after tax 2017 $55 000 20 000 15 000 5 000 317 000 14 000 34 000 130 000 70 000 164 000 2017 $507 000 150 000 9 000 42 000 3 000 111 000 192 000 47 000 $145 000 2016 $33 000 30 000 10 000 1 000 70 000 6 000 20 000 20 000 50 000 48 000

Answer rating: 100% (QA)

Cash Flow Statement Melanie Ltd 31 st March 2017 Particulars Amount Amount A Cash flow from operating activities Net Profit before tax 192000 Add Depr... View the full answer