Prepare the operating activities section of the cash flow statement. Show full workings 

 

Required: 

1) Prepare the operating activities section of the cash flow statement 

2) Show full workings to justify each line item of your cash flow statement

For the 30 June 2021 year, Neptune Ltd had:

Sales = $190,000

Cost of sales = $100,000

Other expenses = $37,000

Interest expense = $7,000

Tax on profit = $10,000

Profit after tax = $36,000

Note - Other expenses includes total depreciation $21,000.

An extract of the trial balance as at 30 June 2020 and 30 June 2021 is as follows:

2020 2021 Debit Credit Debit Credit Inventory 17,000 21,000 Accounts receivable 24,000 18,000 Cash 12,000 17,000 Land and buildings 130,000 157,000 Plant and machinery 61,000 55,000 Accounts payable 15,000 16,000 Income tax payable 9,000 10,000 Dividend payable 10,000 12,000 Long-term loans 66,000 68,000 Share capital 100,000 100,000 Retained profits 44,000 62,000 244,000 244,000 268,000 268,000