2. Soho Enterprises distributes a wide range of household items. They have a September 30 financial...

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2. Soho Enterprises distributes a wide range of household items. They have a September 30 financial year end. The chief accountant has provided you with the following summarised financial data: Summarised statements of financial position: 2022 2023 Assets Cost Dep'n NBV Cost Dep'n NBV Goodwill Premises 294,000 (54,000) 387,000 240,000 406,000 (82,000) 326,000 324,000 Fixtures 227,000 (23,000) 204,000 295,000 (48,000) 247,000 Equipment 146,000 (12,000) 134,000 218,000 (24,000) 194,000 Long term investments 49,300 26,700 Closing stock 32,400 20,600 Debtors 19,100 25,000 Short term investments 61,000 12,200 Bank 28,300 Cash 17,000 35,100 1,172,100 1,210,600 Equity and Liabilities Share capital 286,000 305,000 Share premium 10,000 60,000 General reserves 175,000 206,000 Revaluation reserves 33,600 56,600 Retained earnings 192,500 367,600 10% Mortgage 234,000 133,000 Creditors 87,700 11,100 Tax payable 39,000 15,200 Interest owing 51,900 19,500 Dividends owing 62,400 24,600 Bank overdraft 12,000 1,172,100 1,210,600 Summarised profit information for 2023: Gross profit Net operating expenses 844.600 (482,700) PBT 348,600 less Tax (89,000) PAT 259,600 less Transfer to reserves (31,000) less Dividends (53,500) B Additional notes: " The premises was revalued during the year. During the year, equipment costing $83,000 with a book value of $45,000 was sold for $52,300. REQUIRED: Prepare the cash flow statement for Soho Enterprises. 2. Soho Enterprises distributes a wide range of household items. They have a September 30 financial year end. The chief accountant has provided you with the following summarised financial data: Summarised statements of financial position: 2022 2023 Assets Cost Dep'n NBV Cost Dep'n NBV Goodwill Premises 294,000 (54,000) 387,000 240,000 406,000 (82,000) 326,000 324,000 Fixtures 227,000 (23,000) 204,000 295,000 (48,000) 247,000 Equipment 146,000 (12,000) 134,000 218,000 (24,000) 194,000 Long term investments 49,300 26,700 Closing stock 32,400 20,600 Debtors 19,100 25,000 Short term investments 61,000 12,200 Bank 28,300 Cash 17,000 35,100 1,172,100 1,210,600 Equity and Liabilities Share capital 286,000 305,000 Share premium 10,000 60,000 General reserves 175,000 206,000 Revaluation reserves 33,600 56,600 Retained earnings 192,500 367,600 10% Mortgage 234,000 133,000 Creditors 87,700 11,100 Tax payable 39,000 15,200 Interest owing 51,900 19,500 Dividends owing 62,400 24,600 Bank overdraft 12,000 1,172,100 1,210,600 Summarised profit information for 2023: Gross profit Net operating expenses 844.600 (482,700) PBT 348,600 less Tax (89,000) PAT 259,600 less Transfer to reserves (31,000) less Dividends (53,500) B Additional notes: " The premises was revalued during the year. During the year, equipment costing $83,000 with a book value of $45,000 was sold for $52,300. REQUIRED: Prepare the cash flow statement for Soho Enterprises.

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To prepare the cash flow statement for Soho Enterprises we will use the indirect method The cash flo... View the full answer