Profit before tax Less: income tax expense Profit after tax Less: proposed dividends Net profit for...

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Profit before tax Less: income tax expense Profit after tax Less: proposed dividends Net profit for the period Ocean Ltd. Income Statement for the year ended 2018 June 30 Retained earnings brought forward Retained earnings carried forward Non-current Assets Intangible assets Tangible assets (NBV) Motor vehicles Current Assets Inventory Receivables Bank TOTAL ASSETS Equity Ordinary share capital ($1 each) Share premium Retained earnings Non-current Liabilities Long-term loan Ocean Ltd. Statement of Financial Position as at June 30 S 140,000 84,000 14,000 2018 Current Liabilities Payables Taxation- Bank Proposed dividends TOTAL EQUITY AND LIABILITIES $ 86,800 33,600 53,200 33,600 19,600 291,200 310,800 126,000 392,000 67,200 585,200 $ 238,000 823,200 336,000 4,200 310,800 651,000 61,600 35,000 42,000 33.600 $ 130,200 823,200 2017 126,000 75,600 $ 128,800 336,000 50,400 515,200 201,600 716,800 280,000 291,200 571,200 11,200 56,000 33,600 14,000 30,800 134,40 716,80 Additional information: (i) During the year ended 2018 June 30, the company sold a piece of machinery with a ne book value of $44,800 for a profit of $23,800. (ii) Profit from operations is stated after charging depreciation of $85,400. (iii) Interest charged in the income statement was $6,720. Required: Prepare a statement of cash flows for Ocean Ltd. for the year ended 2018 June 30 in accordance with the IAS 7 format for the preparation of cash flow statements. Profit before tax Less: income tax expense Profit after tax Less: proposed dividends Net profit for the period Ocean Ltd. Income Statement for the year ended 2018 June 30 Retained earnings brought forward Retained earnings carried forward Non-current Assets Intangible assets Tangible assets (NBV) Motor vehicles Current Assets Inventory Receivables Bank TOTAL ASSETS Equity Ordinary share capital ($1 each) Share premium Retained earnings Non-current Liabilities Long-term loan Ocean Ltd. Statement of Financial Position as at June 30 S 140,000 84,000 14,000 2018 Current Liabilities Payables Taxation- Bank Proposed dividends TOTAL EQUITY AND LIABILITIES $ 86,800 33,600 53,200 33,600 19,600 291,200 310,800 126,000 392,000 67,200 585,200 $ 238,000 823,200 336,000 4,200 310,800 651,000 61,600 35,000 42,000 33.600 $ 130,200 823,200 2017 126,000 75,600 $ 128,800 336,000 50,400 515,200 201,600 716,800 280,000 291,200 571,200 11,200 56,000 33,600 14,000 30,800 134,40 716,80 Additional information: (i) During the year ended 2018 June 30, the company sold a piece of machinery with a ne book value of $44,800 for a profit of $23,800. (ii) Profit from operations is stated after charging depreciation of $85,400. (iii) Interest charged in the income statement was $6,720. Required: Prepare a statement of cash flows for Ocean Ltd. for the year ended 2018 June 30 in accordance with the IAS 7 format for the preparation of cash flow statements. Profit before tax Less: income tax expense Profit after tax Less: proposed dividends Net profit for the period Ocean Ltd. Income Statement for the year ended 2018 June 30 Retained earnings brought forward Retained earnings carried forward Non-current Assets Intangible assets Tangible assets (NBV) Motor vehicles Current Assets Inventory Receivables Bank TOTAL ASSETS Equity Ordinary share capital ($1 each) Share premium Retained earnings Non-current Liabilities Long-term loan Ocean Ltd. Statement of Financial Position as at June 30 S 140,000 84,000 14,000 2018 Current Liabilities Payables Taxation- Bank Proposed dividends TOTAL EQUITY AND LIABILITIES $ 86,800 33,600 53,200 33,600 19,600 291,200 310,800 126,000 392,000 67,200 585,200 $ 238,000 823,200 336,000 4,200 310,800 651,000 61,600 35,000 42,000 33.600 $ 130,200 823,200 2017 126,000 75,600 $ 128,800 336,000 50,400 515,200 201,600 716,800 280,000 291,200 571,200 11,200 56,000 33,600 14,000 30,800 134,40 716,80 Additional information: (i) During the year ended 2018 June 30, the company sold a piece of machinery with a ne book value of $44,800 for a profit of $23,800. (ii) Profit from operations is stated after charging depreciation of $85,400. (iii) Interest charged in the income statement was $6,720. Required: Prepare a statement of cash flows for Ocean Ltd. for the year ended 2018 June 30 in accordance with the IAS 7 format for the preparation of cash flow statements. Profit before tax Less: income tax expense Profit after tax Less: proposed dividends Net profit for the period Ocean Ltd. Income Statement for the year ended 2018 June 30 Retained earnings brought forward Retained earnings carried forward Non-current Assets Intangible assets Tangible assets (NBV) Motor vehicles Current Assets Inventory Receivables Bank TOTAL ASSETS Equity Ordinary share capital ($1 each) Share premium Retained earnings Non-current Liabilities Long-term loan Ocean Ltd. Statement of Financial Position as at June 30 S 140,000 84,000 14,000 2018 Current Liabilities Payables Taxation- Bank Proposed dividends TOTAL EQUITY AND LIABILITIES $ 86,800 33,600 53,200 33,600 19,600 291,200 310,800 126,000 392,000 67,200 585,200 $ 238,000 823,200 336,000 4,200 310,800 651,000 61,600 35,000 42,000 33.600 $ 130,200 823,200 2017 126,000 75,600 $ 128,800 336,000 50,400 515,200 201,600 716,800 280,000 291,200 571,200 11,200 56,000 33,600 14,000 30,800 134,40 716,80 Additional information: (i) During the year ended 2018 June 30, the company sold a piece of machinery with a ne book value of $44,800 for a profit of $23,800. (ii) Profit from operations is stated after charging depreciation of $85,400. (iii) Interest charged in the income statement was $6,720. Required: Prepare a statement of cash flows for Ocean Ltd. for the year ended 2018 June 30 in accordance with the IAS 7 format for the preparation of cash flow statements.

Answer rating: 100% (QA)

SOLUTION To prepare a statement of cash flows for Oceans Ltd for the year ended 2018 June 30 we will ... View the full answer