The following statement of financial position relates to ABC Ltd for the years ending 30 June...
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The following statement of financial position relates to ABC Ltd for the years ending 30 June 2020 and 30 June 2019. + Cash at Bank Bank bills Accounts Receivable Inventory Machinery Accumulated Depreciation - Machinery Building Accumulated Depreciation - Building Accounts Payable Current Tax Liability ABC Ltd Statement of Financial Position As at 30 June Wages payable Share Capital Retained earnings Sales Revenue Cost of Sales - d) Expenses of $144,500 comprise of Depreciation on machinery 2020 ($) 33,250 125,000 95,500 122,500 Depreciation on building Carrying amount of machinery sold $24,500 103,000 (50,000) 60,000 (25,000) 464,250 90,000 6,250 7,250 h) The terms of the bank bills do not exceed 90 days. 144,000 216,750 464,250 2019 ($) 22,000 30,000 74,500 138,000 Additional Information: a) Gross profit for the year ended 30 June 2020 was $176,500, and consisted of: $599,500 423,000 167,500 (65,000) 60,000 (15,000) 412,000 b) All purchases and sales of inventory were made on credit. c) In the year ended 30 June 2020, ABC Ltd reported a net profit of $47,500, after deducting expenses of $144,500 and income tax expense of $15,000 from total income. 85,500 3,750 2,250 108,500 212,000 412,000 Wage expense e) During the year ended 30 June 2020, ABC Ltd issued 50,000 ordinary bonus shares fully paid at $0.10 per share from retained earnings. The company also paid cash dividends. f) The company sold a machinery, which had an original cost of 64,500, for 30,500 on cash. g) No building was purchased or sold during the year. 5 Required: Prepare the statement of cash flows of ABC Ltd for the year ended 30 June 2020 based on the direct method of presentation. Provide relevant calculations. Ignore tax effects. Notes are not required. O The following statement of financial position relates to ABC Ltd for the years ending 30 June 2020 and 30 June 2019. + Cash at Bank Bank bills Accounts Receivable Inventory Machinery Accumulated Depreciation - Machinery Building Accumulated Depreciation - Building Accounts Payable Current Tax Liability ABC Ltd Statement of Financial Position As at 30 June Wages payable Share Capital Retained earnings Sales Revenue Cost of Sales - d) Expenses of $144,500 comprise of Depreciation on machinery 2020 ($) 33,250 125,000 95,500 122,500 Depreciation on building Carrying amount of machinery sold $24,500 103,000 (50,000) 60,000 (25,000) 464,250 90,000 6,250 7,250 h) The terms of the bank bills do not exceed 90 days. 144,000 216,750 464,250 2019 ($) 22,000 30,000 74,500 138,000 Additional Information: a) Gross profit for the year ended 30 June 2020 was $176,500, and consisted of: $599,500 423,000 167,500 (65,000) 60,000 (15,000) 412,000 b) All purchases and sales of inventory were made on credit. c) In the year ended 30 June 2020, ABC Ltd reported a net profit of $47,500, after deducting expenses of $144,500 and income tax expense of $15,000 from total income. 85,500 3,750 2,250 108,500 212,000 412,000 Wage expense e) During the year ended 30 June 2020, ABC Ltd issued 50,000 ordinary bonus shares fully paid at $0.10 per share from retained earnings. The company also paid cash dividends. f) The company sold a machinery, which had an original cost of 64,500, for 30,500 on cash. g) No building was purchased or sold during the year. 5 Required: Prepare the statement of cash flows of ABC Ltd for the year ended 30 June 2020 based on the direct method of presentation. Provide relevant calculations. Ignore tax effects. Notes are not required. O
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Related Book For
Intermediate Accounting Volume 1
ISBN: 978-1119496496
12th Canadian edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
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