Cash flow statements, Cost Accounting

The balance sheet and income statement for Bingle Ltd is presented to you as follows:

Balance Sheet Extract as at 30 June 2012 with comparatives

 

 

30 June 2011

$

30 June 2012

$

Current Assets

 

 

Cash

88 000

121 500

Accounts Receivable

110 000

140 000

Provision for Doubtful Debts

-15 000

-20 000

Inventory

  45 000

  50 000

 

228 000

291 500

Non Current Assets

 

 

Land

50 000

125 000

Buildings

200 000

200 000

Accumulated Depn - Buildings

-20 000

-30 000

Plant and Equipment

200 000

210 000

Accumulated Depn - Plant and Equip

 -20 000

 -20 000

 

410 000

485 000

TOTAL ASSETS

638 000

776 500

 

 

 

Current Liabilities

 

 

Trade Creditors

37 000

30 000

Electricity Payable

3 000

5 000

Wages Payable

5 000

10 000

Income Tax Payable

38 000

44 000

 

83 000

89 000

Non Current Liabilities

 

 

Long Term Loans

50 000

65 000

TOTAL LIABILITIES

133 000

154 000

 

The income statement for the year ending 30 June 2012

 

 

  $

Sales (all on credit)

 

442 500

Less Cost of Goods Sold

 

120 000

Gross Profit

 

322 500

Less Expenses Incurred

 

 

Wages

135 000

 

Interest

5 500

 

Electricity

22 500

 

Doubtful Debts

20 000

 

Depreciation Buildings

10 000

 

Depreciation - Plant and Equip

35 000

228 000

Operating Profit before Tax

 

94 500

Less Taxation Expense

 

42 000

Operating Profit after tax

 

52 500

Required

(i) Reconstructing all relevant ledger accounts, prepare the operating cash flows section of the cash flow statement to determine operating cash flows for the year ending 30 June 2012.  Show each individual cash flow item separately.

 

(ii) Prepare a reconciliation of operating profit (after tax) to cash received from operating activities for the year ending 30 June 2012.

Posted Date: 3/30/2013 6:29:32 AM | Location : United States







Related Discussions:- Cash flow statements, Assignment Help, Ask Question on Cash flow statements, Get Answer, Expert's Help, Cash flow statements Discussions

Write discussion on Cash flow statements
Your posts are moderated
Related Questions

Economic Order Quality or EOQ Define the model and the three methods of computing the EOQ. 1. Assumptions of the model. Illustration The given information was extra

Functional Classification of Costs Beneath this classification, costs are classified according to the function they execute in an organization.  Costs can functionally be clas

L I M I T A T I O NS OF STANDARD COSTING 1.     It may be very difficult to fix standards for all operations. 2.     Incorrect standards may result in wastage of mo

WORKED EXAMPLES OF EXPECTED CASH COLLECTIONS PATTERNS

Which of the following are easy to trace to individual jobs?:   A. direct materials and overhead B. direct materials and direct labor C. direct labor and overhead

During the dinner hour, the distribution of the inter-arrival time of customers at Burger Barn is predictable to be as follows: Inter-arrival Time Probabi

Q. Show the Profit volume charts? A variation of a break-even chart, representing graphically the relationship between profit &losses at different levels of sales volume achiev

Q. Issues to consider when making decisions? At activity level A it can be seen from diagram that sales revenue line intersects the total cost line specifying that this is the

Capital Expenditure Budget This represents the expenditure on all fixed assets throughout the budget period.  Addition intended to profit future accounting periods, or expend