Tutorial Week 13/ Exam Practice Questions 1. Using the information provided for Acme Pty Ltd, prepare the direct method of a Statement of Cash Flows for the year ended 30 June 2020. Acme Pty Ltd Income Statement for the year ended 30 June 2020 Sales revenue $975,000 Cost of goods sold Inventory, 1.7.2019 160,000 Purchases 670.000 830.000 Inventory, 30.6.2020 170.000 660,000 Gross Profit 315,000 Operating Expenses (excluding depreciation) 176,000 Depreciation expense 18,000 Loss on sale of equipment 1,000 195,000 Profit before income taxes 120,000 Income tax expense 36.000 Net profit $84.000 Acme Pty Ltd Statements of Financial Position As at 30 June 2019 and 2020 2020 2019 Assets Cash $ 191,000 $ 159,000 Accounts receivable 12,000 15,000 Inventory 170,000 160,000 Prepaid expenses 6,000 8,000 Land 140,000 80,000 Equipment 160,000 0 Accumulated depreciation - Equipment (16.000) Total assets $663,000 $422.000 Liabilities & Owners' Equity Accounts payable $ 52,000 $ 60,000 Accrued expenses payable 15,000 20,000 Income taxes payable 12,000 0 Bonds payable 130,000 Share capital 360,000 300,000 Retained profits 94,000 42.000 Total liabilities & owners' equity $663,000 $422.000