(Continued next page) QUESTION 4: Cash Flow Statement (16 marks) Thelma Binkley is the sole proprietor of the "Retro Lounge'a business that sells retro banana lounges. Thelma is a good friend of both Ms Blake and Mr Jones and they frequently refer clients to each others business. They have been so impressed with the quality of accounting work done for them by Michell & Co Accounting Specialists Pty Ltd and in particular with your work, that they have suggested that Thelma come to see you for assistance in preparing the Cashflow Statement for the "Retro Lounge RETRO LOUNGE COMPARATIVE BALANCE SHEETS AS AT JUNE 30 2030 2019 51 950 3.000 S98 0 33 300 2000 600 Car Cash on land Cash at Hank Accounts Receivable (net) Inventory Prepaid Expenses Now Current Aste Plant & Ent less Ace Depreciation Land Total 57174 16000 200 52x 159 64000 3 500 23.000 NO 000 212 24 TRO 254 559 6402 3495 780 Crew Libilines Rank Cendran Accounts Payable Expenses Payable Tax Payable Now Car Lines Bank Leon Total Liabiline Nel As 290 1200 20.000 44420 5167778 5229 Liquiry 167778 $167.728 220 S29 (Continued next (Continued next page) QUESTION 4: Cash Flow Statement (cont.) RETRO LOUNGE INCOME STATEMENT FOR THE YEAR ENDED 30th JUNE 2020 Net Sales Cost of Sales Discount Received Gross Profile: Other Reverte Interest Revenue $148 500 45 200 280 103 580 83 82 123 644 Expenses Selling & Admin Expense Doubtful Debts Expense Depreciation Expense Interest Expense Profit before tax Income tax expense Profit 18 847 354 5 400 3 ROO 28 401 75 262 16278 $58984 Additional Information The Land was sold for $100,000 cash. ANSWER THIS QUESTION ON THE PRO FORMA PROVIDED REQUIRED: a. Prepare a Statement of Cash Flows in the pro forma provided below and show all calculations (an answer without supporting calculations will receive zero marks). (15 marks) (Continued next page) QUESTION 4: Cash Flow Statement (cont.) RETRO LOUNGE Cash Flow Statement for the year ended 30 June 2020 55 Cashles from Operating sites Receipes from Customers Payment Supplies & Employees Cash prerased from per It Paid Income Tax Paid Interest Received Castles from Operating Activities Cashles from investing Activities Purchase of Fiquip Proceeds from Sale of Land Cashles from nesting Activities Cases frow in Activities Drawings Net Increw decrease in cash holid Cashstan Cashmend Calculations below & on next page please