Thorpes Tubing Pty Ltd has provided following comparative statements of financial position for years 2017 and...
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Thorpes Tubing Pty Ltd has provided following comparative statements of financial position for years 2017 and 2016. THORPES TUBING PTY LTD Comparative statements of financial position Cash at bank Accounts receivable Inventory Land Equipment Accumulated depreciation Assets Accounts payable Notes payable (long term) Share capital Retained earnings $60 000 85 000 180 000 75 000 260 000 (66 000) $594 000 30 June 2017 Liabilities and equity $34 000 150 000 214 000 196 000 $594 000 30 June 2016 $22 000 76 000 189 000 100 000 200 000 (42 000) $545 000 $47 000 200 000 164 000 134 000 $545 000 Additional information: 1. Profit for 2017 was $105 000. Total expenses were $873 000 and included cost of sales expense $528 000, interest paid $15 000, tax expense $45 000, depreciation $24 000 and other operating expenses $261 000. 2. Cash dividends of $43 000 were declared and paid. 3. Notes payable amounting to $50 000 were redeemed for cash $50 000. 4. Ordinary shares were issued for $50 000 cash. 5. Sales for 2017 were $978 000. 6. Land was sold at cost. Required: Complete the statement of cash flows for 2017 using the direct method. Thorpes Statement of Cash Flows for the year ended 30 June 2017 Cash flows from operating activities: Cash receipts from customers Cash payments: To suppliers For operating expenses For income taxes For interest Net cash used by investing activities Cash flows from investing activities: Sale of land Purchase of equipment Net cash used by investing activities Cash flows from financing activities: Proceeds from issue of shares Repayment of notes payable Payment of dividends Net cash provided by financing activities Net increase (decrease) in cash Cash at beginning of period Cash at end of period Thorpes Tubing Pty Ltd has provided following comparative statements of financial position for years 2017 and 2016. THORPES TUBING PTY LTD Comparative statements of financial position Cash at bank Accounts receivable Inventory Land Equipment Accumulated depreciation Assets Accounts payable Notes payable (long term) Share capital Retained earnings $60 000 85 000 180 000 75 000 260 000 (66 000) $594 000 30 June 2017 Liabilities and equity $34 000 150 000 214 000 196 000 $594 000 30 June 2016 $22 000 76 000 189 000 100 000 200 000 (42 000) $545 000 $47 000 200 000 164 000 134 000 $545 000 Additional information: 1. Profit for 2017 was $105 000. Total expenses were $873 000 and included cost of sales expense $528 000, interest paid $15 000, tax expense $45 000, depreciation $24 000 and other operating expenses $261 000. 2. Cash dividends of $43 000 were declared and paid. 3. Notes payable amounting to $50 000 were redeemed for cash $50 000. 4. Ordinary shares were issued for $50 000 cash. 5. Sales for 2017 were $978 000. 6. Land was sold at cost. Required: Complete the statement of cash flows for 2017 using the direct method. Thorpes Statement of Cash Flows for the year ended 30 June 2017 Cash flows from operating activities: Cash receipts from customers Cash payments: To suppliers For operating expenses For income taxes For interest Net cash used by investing activities Cash flows from investing activities: Sale of land Purchase of equipment Net cash used by investing activities Cash flows from financing activities: Proceeds from issue of shares Repayment of notes payable Payment of dividends Net cash provided by financing activities Net increase (decrease) in cash Cash at beginning of period Cash at end of period
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Related Book For
Intermediate Accounting
ISBN: 978-1119048541
11th Canadian edition Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy
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