Balance sheet and income statement, Financial Accounting

Assignment Help:

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.

Related Discussions:- Balance sheet and income statement

Discounted present value, A player for a Rice team, Jim Jones, is graduatin...

A player for a Rice team, Jim Jones, is graduating this year and is considering a career in professional sports. The alternative is to work for two years and then attend business s

Utility of Management accounting, Enumerate the scope and utility of manage...

Enumerate the scope and utility of management accounting.

Journalizing, ABC Corportation purchased $15,000 of office furniture by put...

ABC Corportation purchased $15,000 of office furniture by putting down $7000 soqn in cash and the rest on accout

Pv ratio, assignment ofr p V RATIO ANALYSIS

assignment ofr p V RATIO ANALYSIS

Identifying fixed cost and variable cost, 1. When preparing the operating a...

1. When preparing the operating activities section of the statement of cash flows using the indirect method, a decrease in accounts recievable is subtracted from net income. True o

Calculate weighted average shares, Long-term Debt ...

Long-term Debt 10% notes payable $1,000,000 7% convertible bonds payable 5,000,000 Discount

Construct the market value balance sheet, Construct the Market Value Balanc...

Construct the Market Value Balance Sheet XYZ, Inc., another company founded by Larry Davidson in 2005, is currently entirely equity financed. That means the company carries no

Sugar and Spice bakery, Perform a business size-up of Sugar and Spice Baker...

Perform a business size-up of Sugar and Spice Bakery. 2. Qualitatively analyze the opportunity of closing the storefront to cater events.

Significance in working capital cycle, For several firms trade payables - s...

For several firms trade payables - suppliers of goods and services - represent the major component of current liabilities the amounts owed by the company which have to be repaid wi

Determine total financial liabilities, From the end of January to the end o...

From the end of January to the end of December 2010, the XYZ Company experienced the following changes in its assets and liabilities of interest: the company achieved a saving posi

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages