Balance sheet and income statement, Financial Accounting

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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.

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