Financial figures of the business of C. Wilson for the last 2 years are shown below. C.
Question:
Financial figures of the business of C. Wilson for the last 2 years are shown below.
C. WILSON Comparative Statements of Financial Position as of 30 June | |||||||||
2020 | 2021 | ||||||||
ASSETS Cash at bank Accounts receivable Inventory Plant and equipment Accumulated depreciation – plant and equipment | $9 000 4 200 | $ 4 200 14 400 4 800 | $10 800 4 500 | $ 2 820 5 100 16 800 6 300 | |||||
Land Buildings Accumulated depreciation – buildings | 12 000 600 | 12 000 11 400 | 12 000 840 | 6 000 11 160 | |||||
$46 800 | $48 180 | ||||||||
LIABILITIES AND EQUITY Accounts payable Bank Overdraft C. Wilson, Capital | $ 7 200 3 000 36 600 | $ 7 800 — 40 380 | |||||||
$46 800 | $48 180 |
The income statement for the business for the year ended 30 June 2021 reveals the following details:
C. WILSON Income Statement for the year ended 30 June 2021 | ||
INCOME Sales revenue OTHER INCOME Gain from sale of land | $ 18 000 2 400 | |
EXPENSES Cost of sales Depreciation of plant and equipment Depreciation of buildings Loss of sale of plant Other expenses | $9 600 1 200 240 180 2 640 | 20 400 13 860 |
PROFIT | $6 540 |
Additional information
1. During the year ended 30 June 2021, Wilson withdrew $30 per week in cash for 52 weeks for private purposes.
2. Wilson also withdrew $1200 from her business bank account to pay her personal income tax.
3. Land, shown in the accounts at $6000, was sold during the year for $8400.
4. Plant costing $1800 and written down to $900 was sold for $720.
5. Ignore GST.
Required
Prepare a statement of cash flows for the year ended 30 June 2021 using the direct method.
Macroeconomics
ISBN: 978-1464168505
5th Canadian Edition
Authors: N. Gregory Mankiw, William M. Scarth