Prepare a statement of cash flows, Cost Accounting

Bickering Ltd Income Statement for the year ended 30 June 2012

  Sales (credit)                                                                           636,100

LESS Cost of sales                                                                   (411,500)

GROSS PROFIT                                                                          224,600

Inventory Loss                                                                             (2,200)

Adjusted Gross Profit                                                                222,400

LESS Operating expenses

            Depreciation of equipment                50,000

            Depreciation of motor vehicles          35,000

            Doubtful debts                                      4,000

            Interest expense                                 11,500

            Wages expense                                   71,300

            Insurance expense                              12,000

            Other expenses                                     8,800            (192,600)

NET PROFIT BEFORE TAX                                                          29,800

LESS Company tax expense                                                      (8,940)

PROFIT AFTER TAX                                                                 $ 20,860

Bickering Ltd Balance Sheets as at:

Current Assets

Cash

Accounts Receivable

Allowance for Doubtful Debts

Inventory

Prepaid Insurance

30/6/12

109,010

38,100

(2,500)

65,500

3,000

213,110

30/6/11

2,140

45,200

(2,000)

70,480

5,000

120,820

Non-current Assets

Motor Vehicles

Less Accumulated Depreciation

Equipment

Less Accumulated Depreciation

Land

 

240,000

(70,000)

650,000

(230,000)

100,000

690,000

 

240,000

(35,000)

640,000

(200,000)

0

645,000

Total Assets

$ 903,110

$ 765,820

Current Liabilities

Accounts Payable

Accrued Interest

Tax Payable

Accrued Wages

 

35,600

8,000

8,940

880

53,420

 

22,700

0

7,350

1,940

31,990

Non-current Liabilities

Loan Payable

 

105,000

 

110,000

Total Liabilities

158,420

141,990

Equity

Share Capital

Retained Earnings

General Reserve

 

580,000

44,690

120,000

744,690

 

465,000

58,830

100,000

623,830

Total Liabilities and Equities

$ 903,110

$ 765,820

Other information:

Bad debts were written off during the year.

Equipment was sold for $10,000 cash.

New equipment was purchased for cash.

A loan repayment was made.

Additional shares were issued.

$20,000 was transferred to the general reserve from retained earnings.

Cash dividends were paid.

Tax was paid.

Required:

(a)   Prepare a statement of cash flows for the year ending 30 June 2012.

(b)   Prepare a reconciliation of profit to net cash flow from operating activities.

(c)    Comment on the cash flows of Bickering Ltd. Maximum 200 words. Referencing is not required. A word count is required.

Posted Date: 2/18/2013 1:31:31 AM | Location : United States







Related Discussions:- Prepare a statement of cash flows, Assignment Help, Ask Question on Prepare a statement of cash flows, Get Answer, Expert's Help, Prepare a statement of cash flows Discussions

Write discussion on Prepare a statement of cash flows
Your posts are moderated
Related Questions
We have earlier explained working capital by total current assets less current liabilities. It, in other words, implies that all the assets held through the business along with the

Xander Harris is considering whether to buy a corn and soybean farm in Iowa. The farm will cost $800,000, and Xander will be able to pay this from profits his recently deceased mot

formula for economic order quantity

Blox ($) Shapez ($) Direct material per unit 10 23 Direct labour per unit 19 32 Manufacturing overhead per unit 7 10 Selling & Admin. expenses per unit 17 31 T

The following information is provided to you concerning Lydia Ltd as at 30 June 2012.  Assume a company tax rate of 30%. (i) The balance of rent received in advance in the balan


1. Pardee Company plans to sell 12,000 units during the month of August. If the company has 2,500 units on hand at the start of the month, and plans to have 2,000 units on hand at

(a)  The value of a share of Rio National Equity on 31 December 2002, using the Gordon growth model and the capital asset pricing model, can be determined as follows. Required

Comparison between Marginal Costing and Absorption Costing There are accountants who favour all costing method. Arguments in favour about absorption costing are specified a

The following details were extracted from the standard cost card of a component:       Raw Materials              2.82 Kgs @ Rs.4.80 Kg.     Direct Labour            Type I   6