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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