360.000 324.000 Question 1- Cash flow statement (20 MARKS) Question 1 continued The following data relate to Coast Ltd for the year ended 30 June 2019. Coast Ltd's assets, liabilities and equity balances as at 30 June are presented below: Coast Ltd Assets 2019 2018 Income Statement Cash 60,000 30,000 Short-term investments at call 30,000 58,000 For the year ended 30 June 2019 Accounts receivable 21,000 16,000 Income Allowance for doubtful debts (4,000) (2.000) Sales 750,000 Trade bills receivable 2,000 3,000 Dividends revenue 14,000 Inventory 52,000 44,000 Interest revenue 5,000 Prepaid expenses 5,000 3,000 Gain on sale of equipment 12.000 Deferred tax asset 6,000 8,000 781,000 Shares in Gembond Ltd 140,000 120,000 Expenses Equipment 86,000 74,000 Accumulated depreciation - equipment (38.000) (30.000) Cost of goods sold ( 465,000) Doubtful debts expense (3.000) Liabilities & Equity Interest expense (6,000) Accounts payable 60,000 48,000 Discount allowed (2.000) Trade bills payable 3,000 6,000 Other expenses 200.000 (676.000) Accrued expenses 5,000 7,000 Profit before income tax 105,000 Current tax liability 6,000 9,000 Income tax expense ( 25.000) Bank overdraft 40,000 114,000 Profit for the period 80.000 Dividend payable 12,000 11,000 Share capital (ordinary shares, issued at $1) 150,000 80,000 Retained earnings 84.000 49,000 360.000 324.000 Question 1 continued Answer sheet for Section 2 Question 1 (a) Additional information: 1) ii) Ref No 111) iv) Other expenses include equipment depreciation expense. New shares in Gembond Ltd were acquired for cash. Equipment with a cost of $20,000 and accumulated depreciation of $10,000 was sold. New equipment was purchased for cash. During the year the company made two issues of ordinary shares valued at $1 each as follows: - a 1-for-4 bonus issue out of retained eamings in August 2018, and - a 1-for-2 renounceable rights issue in May 2019. Interim and final dividends were paid The bank overdraft is used as part of the company's short-term cash management activities. Coast Ltd Statement of Cash Flows for the year ended 30 June 2019 Cash flows from operating activities Cash received from customers Cash paid to suppliers and employees Cash generated from operations Interest paid Income taxes paid Net cash provided by operating activities Cash flows from investing activities Proceeds from sale of equipment Payments for shares in Gembond Ltd Payments for equipment Dividends received Interest received Net cash used in investing activities Cash flows from financing activities Proceeds from share issue Dividends paid Net cash used in financing activities Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of period Cash and cash equivalents at the end of period vi) Required: a). Prepare Coast Ltd's cash flow statement for the year ended 30 June 2019 in accordance with AASB 107 Statement of Cash Flows. Cross reference all cash flows with your workings (template provided). (15 marks) b). Prepare a note for reconciliation of net cash provided by operating activities to net profit (no template provic