Prepare a statement of cash flows using the direct method. Prepare a reconciliation of profit to...

  

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Prepare a statement of cash flows using the direct method. Prepare a reconciliation of profit to cash provided by operations. Assets Cash Accounts receivable Inventory Investments (long term) Plant and equipment Accumulated depreciation Total Assets Liabilities and equity Accounts payable Accrued expenses payable Debentures payable Share capital Retained earnings Total liabilities and equity Sales Gain on sale of equipment Less: Cost of sales Income tax Interest expense Profit Operating expenses, excluding depreciation expense Depreciation expense Additional information: Heroes Pty Ltd Statement of financial position as at 30 June 2023 1. 2. 3. 4. 5. 6. 2023 45,000 38,000 50,000 42,000 150,000 28,000 $297,000 Heroes Pty Ltd Statement of profit or loss for the year ended 30 June 2023 25,000 5,500 25,000 150,000 91,500 $297,000 45,000 12,500 22,000 39,000 4,500 2022 25,000 17,000 52,500 45,000 125,000 - 21,000 $243,500 24,000 9,500 30,000 120,000 60,000 $243,500 187,000 7,500 194,500 123,000 $71,500 New equipment and machinery were purchased for cash during the year. Investments were sold at cost. Equipment costing $22,000 was sold for $14,500, resulting in a gain of $7,500. A cash dividend was declared and paid during the year. Shares are issued at cash. Debentures are reimbursed at cash. Accounts payable pertain to inventory creditors. Prepare a statement of cash flows using the direct method. Prepare a reconciliation of profit to cash provided by operations. Assets Cash Accounts receivable Inventory Investments (long term) Plant and equipment Accumulated depreciation Total Assets Liabilities and equity Accounts payable Accrued expenses payable Debentures payable Share capital Retained earnings Total liabilities and equity Sales Gain on sale of equipment Less: Cost of sales Income tax Interest expense Profit Operating expenses, excluding depreciation expense Depreciation expense Additional information: Heroes Pty Ltd Statement of financial position as at 30 June 2023 1. 2. 3. 4. 5. 6. 2023 45,000 38,000 50,000 42,000 150,000 28,000 $297,000 Heroes Pty Ltd Statement of profit or loss for the year ended 30 June 2023 25,000 5,500 25,000 150,000 91,500 $297,000 45,000 12,500 22,000 39,000 4,500 2022 25,000 17,000 52,500 45,000 125,000 - 21,000 $243,500 24,000 9,500 30,000 120,000 60,000 $243,500 187,000 7,500 194,500 123,000 $71,500 New equipment and machinery were purchased for cash during the year. Investments were sold at cost. Equipment costing $22,000 was sold for $14,500, resulting in a gain of $7,500. A cash dividend was declared and paid during the year. Shares are issued at cash. Debentures are reimbursed at cash. Accounts payable pertain to inventory creditors.

Answer rating: 100% (QA)

Heroes Pty Ltd Statement of Cash Flows For the Year Ended 30 June 2023 Using the Direct Method Cash ... View the full answer