QUESTION 5

Use the information provided in Question 2 but assume:

(a) GST of 15% is applicable

(b) The existing balances for Accounts receivable and Accounts payable are GST inclusive

(c) A GST account existed and the account balance in 2017 and 2018 was $10 000 Cr

(d) The 2017 Retained earnings account balance changed to $600 000, and the 2018 balance changed to $705 000.

Required:

(i) Complete the general ledger accounts as required in the answer booklet.

(ii) Prepare the cash flows from operating activities (CFOA) section of a statement of cash flows for Vittoria Ltd, for the year ended 31 March 2018, in accordance with NZ IAS 7 Statement of Cash Flows. Vittoria Ltd uses the direct method for the CFOA section and classifies interest expense paid as a CFOA. A reconciliation is not required.

QUESTION5 (i) Selected general ledger accounts of Vittoria Ltd to complete: Accounts receivable GST inclasite GST exciusive GST GST Allowance for DD Inventory Accounts payable GST exclusive GST GST GST inclusive GST payable Question 5 continued: Statement ofCas Fows for Vitfria Ltd Tor theear ended 31 March 2018 Cash flows from operating activities Cash generated from operations Net cash (used in) from operating activities Vittoria Ltd requires a Statement of Cash Flows to be prepared for the year ended 31 March 2018, the following information has been collected for this purpose. Vittoria Ltd Balance Sheets as at 31 March Cash Accounts receivable Allowance for doubtful debts Inventory Plant and equipment Accumulated depreciation Total assets Accounts payable Interest payable Income tax payable Long term loans Share capital Asset revaluation surplus Retained earnings Total equity and liabilities 2017 $176 000 220 000 (30 000) 90 000 900 000 (80 000) $1 276 000 80 000 1000 76 000 109 000 400 000 2018 S239 000 280 000 (40 000) 100 000 1 074 000 (100 000) S1 553 000 70 000 2000 88 000 148 000 500 000 30 000 715 000 $1 553 000 610 000 $1 276 000 Vittoria Ltd SCI for the year ended 31 March 2018 Sales S885 000 Less expenses COGS Depreciation expense Interest expense Doubtful debts expense Salaries and wages expense Income tax expense Other expenses 240 000 90 000 6 000 40 000 200 000 84 000 120 000 05 000 30 000 S135 000 Profit after tax OCI: Revaluation gain TCI Question 2 continued: Additional information: Vittoria Ltd classifies interest expense and dividends paid as cash outflows from financing activities Plant and equipment, with a fair value of $100 000, has been acquired by the issue of $100 000 worth of fully paid Vittoria Ltd shares to the sellers of the plant and equipment. During the year, equipment that originally cost $100 000 was sold for $30 000 cash. Plant and equipment was revalued upwards by $30 000. A long-term loan of S30 000 was specifically organised for the purchase of plant and equip- ment costing S30 000. QUESTION5 (i) Selected general ledger accounts of Vittoria Ltd to complete: Accounts receivable GST inclasite GST exciusive GST GST Allowance for DD Inventory Accounts payable GST exclusive GST GST GST inclusive GST payable Question 5 continued: Statement ofCas Fows for Vitfria Ltd Tor theear ended 31 March 2018 Cash flows from operating activities Cash generated from operations Net cash (used in) from operating activities Vittoria Ltd requires a Statement of Cash Flows to be prepared for the year ended 31 March 2018, the following information has been collected for this purpose. Vittoria Ltd Balance Sheets as at 31 March Cash Accounts receivable Allowance for doubtful debts Inventory Plant and equipment Accumulated depreciation Total assets Accounts payable Interest payable Income tax payable Long term loans Share capital Asset revaluation surplus Retained earnings Total equity and liabilities 2017 $176 000 220 000 (30 000) 90 000 900 000 (80 000) $1 276 000 80 000 1000 76 000 109 000 400 000 2018 S239 000 280 000 (40 000) 100 000 1 074 000 (100 000) S1 553 000 70 000 2000 88 000 148 000 500 000 30 000 715 000 $1 553 000 610 000 $1 276 000 Vittoria Ltd SCI for the year ended 31 March 2018 Sales S885 000 Less expenses COGS Depreciation expense Interest expense Doubtful debts expense Salaries and wages expense Income tax expense Other expenses 240 000 90 000 6 000 40 000 200 000 84 000 120 000 05 000 30 000 S135 000 Profit after tax OCI: Revaluation gain TCI Question 2 continued: Additional information: Vittoria Ltd classifies interest expense and dividends paid as cash outflows from financing activities Plant and equipment, with a fair value of $100 000, has been acquired by the issue of $100 000 worth of fully paid Vittoria Ltd shares to the sellers of the plant and equipment. During the year, equipment that originally cost $100 000 was sold for $30 000 cash. Plant and equipment was revalued upwards by $30 000. A long-term loan of S30 000 was specifically organised for the purchase of plant and equip- ment costing S30 000