The following information was taken from the comparative financial statements of Rosso's Hardware Store prepared on...

 

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The following information was taken from the comparative financial statements of Rosso's Hardware Store prepared on an accrual basis: ROSSO'S HARDWARE STORE Comparative Financial Statements 2013 2012 Sales revenue $870 000 $810 000 Cost of sales $340 000 $319 500 Expenses (including Depreciation Expense of $63 000 p.a.) $333 000 $315 000 Profit $180 000 $175 500 Year-end accounts receivable $166 500 $150 000 Year-end inventory $117 000 $137 000 $ 76 500 $ 22 500 Year-end accounts payable $ 70 000 Year-end wages payable S 35 000 Required Part (a) - Prepare a schedule to show the net cash flow provided by Operating Activities during 2013 in accordance with AASB 107- Cash Flow Statements. Assume there is no income tax, GST or write-off of bad debts. Part (b) – Classify the following items into either Operating, Investing or Financing Activitics and indicate whether they represent a Cash Inflow or Cash Outflow. (If any item does not appear in the Cash Flow Statement, this should be specified in your answer.) 1. Cash Received from Debtors S753,000. 2. Shares Issued to Shareholders $500,000. 3. Purchase of new Equipment $150,000. 4. Amortisation of Patents $36,000. 5. Repayment of Mortgage Loan $200,000. 6. Sale of Land & Buildings $900,000. 7. Payment of Wages S85,000. 8. Interest received on Term Deposits $7,000. 9. Cash paid to Creditors $333,000. 10. Depreciation of Motor Vehicles $29,000. The following information was taken from the comparative financial statements of Rosso's Hardware Store prepared on an accrual basis: ROSSO'S HARDWARE STORE Comparative Financial Statements 2013 2012 Sales revenue $870 000 $810 000 Cost of sales $340 000 $319 500 Expenses (including Depreciation Expense of $63 000 p.a.) $333 000 $315 000 Profit $180 000 $175 500 Year-end accounts receivable $166 500 $150 000 Year-end inventory $117 000 $137 000 $ 76 500 $ 22 500 Year-end accounts payable $ 70 000 Year-end wages payable S 35 000 Required Part (a) - Prepare a schedule to show the net cash flow provided by Operating Activities during 2013 in accordance with AASB 107- Cash Flow Statements. Assume there is no income tax, GST or write-off of bad debts. Part (b) – Classify the following items into either Operating, Investing or Financing Activitics and indicate whether they represent a Cash Inflow or Cash Outflow. (If any item does not appear in the Cash Flow Statement, this should be specified in your answer.) 1. Cash Received from Debtors S753,000. 2. Shares Issued to Shareholders $500,000. 3. Purchase of new Equipment $150,000. 4. Amortisation of Patents $36,000. 5. Repayment of Mortgage Loan $200,000. 6. Sale of Land & Buildings $900,000. 7. Payment of Wages S85,000. 8. Interest received on Term Deposits $7,000. 9. Cash paid to Creditors $333,000. 10. Depreciation of Motor Vehicles $29,000.

Answer rating: 100% (QA)

statement of cashflow using direct method in cashflow from operating activities ... View the full answer