Following information relate to Hawke Ltd for the financial year ended 2017 Hawke Ltd Statement of Financial
Question:
Following information relate to Hawke Ltd for the financial year ended 2017
Hawke Ltd Statement of Financial position
As at 30 June 2017
| 2017 | 2016 |
Assets |
|
|
Cash at bank | 84200 | 100000 |
Accounts receivable | 208000 | 172000 |
Inventory | 200000 | 208000 |
Prepaid insurance | 12000 | 20000 |
Interest receivable | 400 | 600 |
Investments | 80000 | 40000 |
Plant and equipment | 800000 | 720000 |
Less: Accumulated depreciation | -200000 | -180000 |
Total assets | 1184600 | 1080600 |
Liabilities |
|
|
Accounts payable | 152000 | 128000 |
Provision for employee benefits | 24000 | 16000 |
Other expenses payable | 8000 | 12000 |
Equity |
|
|
Share capital | 800000 | 800000 |
Retained earnings | 200600 | 124600 |
Total liabilities and equity | 1184600 | 1080600 |
Hawke Ltd
Statement of Financial performance For the period ended 30 June 2017
| 2017 | 2016 |
Income |
|
|
Sales revenue | $1,920,000 |
|
Interest revenue on investments | $4,000 | $1,924,000 |
Less: Expenses |
|
|
Cost of sales | $1,344,000 |
|
Employee expenses | $260,000 |
|
Insurance expense | $32,000 |
|
Loss on sale of equipment | $8,000 |
|
Depreciation expense – plant and equipment | $80,000 |
|
Other expenses | $44,000 | $1,768,000 |
Profit for the year |
| $156,000 |
Additional information
The loss on sale of equipment relates to an item that originally cost $80 000 and had a carrying amount of $20000 when sold.
Required: Calculate the following:
- Cash collected from customers (1 mark)
- Cash paid to suppliers (2 marks)
- Cash paid to employees for wages and salary (1 mark)
- Cash spent on plant and equipment (1 mark)
- Proceeds from sale of equipment (1 mark)
- Cash paid for insurance (1 mark)
Accounting Business Reporting for Decision Making
ISBN: 9780730302414
4th edition
Authors: Jacqueline Birt, Keryn Chalmers, Albie Brooks, Suzanne Byrne, Judy Oliver