A. Hollywood Estate is a Sugar Estate in the Western Region of Jamaica. It produces rum and rubbing alcohol to meet the local demand of the ongoing pandemic, in addition to normally supplying the overseas market with good old Jamaican Rum and Rum Cream. The financial statements of Hollywood Estate are given below. Comparative Statements of Financial Position at: 30 September 2021 30 September 2020 Assets $ $ Current Assets Inventory 420 000 460 000 Accounts Receivable 390 000 320 000 Interest Receivable 4 000 9 000 Investments (Held for trading) 50 000 0 Cash in bank 75 000 0 Cash in hand 7 000 5 000 Total Current Assets 946 000 794 000 Non-Current Assets Property, Plant and Equipment (net) 584 000 510 000 TOTAL ASSETS 1 530 000 1 304 000 Liabilities and Shareholders’ Equity Current Liabilities Bank overdraft 0 70 000 Accounts Payable 550 000 400 000 Interest Payable 6 000 33 000 Income Tax Payable 100 000 90 000 Other Payables 30 000 0 Total Current Liabilities 686 000 593 000 Non-Current Liabilities 10% Note 0 40 000 5% Note 329 000 349 000 Total Non-Current Liabilities 329 000 389 000 TOTAL LIABILITIES 1 015 000 982 000 Shareholders’ Equity Ordinary Share Capital ($1.00 par) 452 000 392 000 Retained Earnings 63 000 (70 000) Total Shareholders’ Equity 515 000 322 000 Total Liabilities and Shareholders’ Equity 1 530 000 1 304 000 Statement of Profit or Loss for year ending 30 September 2021 $ $ Sales Revenue 2 900 000 Cost of Sales (1 734 000) Gross Profit 1 166 000 Operating Expenses: Administrative expenses 342 000 Distribution costs 520 000 (862 000) Income from operations 304 000 Other Revenues and Expenses Interest Income from Investments 5 000 Interest expense (19 000) (14 000) Income from continuing operations before income taxes 290 000 Income tax expense (104 000) Net Income 186 000 Additional information: (1) On 1 October 2020, Hollywood Estate issued additional shares at par. (2) Property, plant and equipment disposed in the year had a carrying amount of $75 000; cash received on disposal was $98 000. (3) Depreciation charge for the year on property, plant and equipment was $87 000. (4) An interim dividend of $53 000 was paid during the year. Required: Complete the schedule provided to prepare a Statement of Cash Flows for the year ending 30 September 2021 using the Indirect Method for Hollywood Estate. When selecting from dropdown lists, if a line item does not apply, select NA and place zero in the field in the number column. Do not leave any number fields blank. Hollywood Estate Statement of Cash Flows – Indirect Method For the year ended 30 September 2021 Cash flows from operating activities Net Income Answer Non-cash items: Answer Answer Answer Answer Answer Answer Cash in (out) from operating working capital: Inventory Answer Answer Accounts Receivable Answer Answer Interest Receivable Answer Answer Investment Answer Answer Prepaid Expenses Answer Answer Accounts Payable Answer Answer Interest Payable Answer Answer Income Tax Payable Answer Answer Other Payables Answer Answer Net cash Answer by operating activities Answer Cash flows from investing activities Investment Answer Answer PPE Answer Answer PPE Answer Answer Net cash Answer by investing activities Answer Cash flows from financing activities Ordinary shares Answer Answer 10% Note Answer Answer 5% Note Answer Answer Dividends Answer Answer Net cash Answer by financing activities Answer Net Answer in cash flows Answer Cash, 30 September 2020 Answer Cash, 30 September 2021 Answer
A. Hollywood Estate is a Sugar Estate in the Western Region of Jamaica. It produces rum and rubbing alcohol to meet the local demand of the ongoing pandemic, in addition to normally supplying the overseas market with good old Jamaican Rum and Rum Cream.
The financial statements of Hollywood Estate are given below.
Comparative
|
|
30 September 2021 |
30 September 2020 |
|
Assets |
$ |
$ |
|
Current Assets |
|
|
|
Inventory |
420 000 |
460 000 |
|
Accounts Receivable |
390 000 |
320 000 |
|
Interest Receivable |
4 000 |
9 000 |
|
Investments (Held for trading) |
50 000 |
0 |
|
Cash in bank |
75 000 |
0 |
|
Cash in hand |
7 000 |
5 000 |
|
Total Current Assets |
946 000 |
794 000 |
|
|
|
|
|
Non-Current Assets |
|
|
|
Property, Plant and Equipment (net) |
584 000 |
510 000 |
|
TOTAL ASSETS |
1 530 000 |
1 304 000 |
|
|
|
|
|
Liabilities and Shareholders’ Equity |
|
|
|
Current Liabilities |
|
|
|
Bank overdraft |
0 |
70 000 |
|
Accounts Payable |
550 000 |
400 000 |
|
Interest Payable |
6 000 |
33 000 |
|
Income Tax Payable |
100 000 |
90 000 |
|
Other Payables |
30 000 |
0 |
|
Total Current Liabilities |
686 000 |
593 000 |
|
|
|
|
|
Non-Current Liabilities |
|
|
|
10% Note |
0 |
40 000 |
|
5% Note |
329 000 |
349 000 |
|
Total Non-Current Liabilities |
329 000 |
389 000 |
|
TOTAL LIABILITIES |
1 015 000 |
982 000 |
|
|
|
|
|
Shareholders’ Equity |
|
|
|
Ordinary Share Capital ($1.00 par) |
452 000 |
392 000 |
|
|
63 000 |
(70 000) |
|
Total Shareholders’ Equity |
515 000 |
322 000 |
|
Total Liabilities and Shareholders’ Equity |
1 530 000 |
1 304 000 |
Statement of Profit or Loss for year ending 30 September 2021
|
|
$ |
$ |
|
Sales Revenue |
|
2 900 000 |
|
Cost of Sales |
|
(1 734 000) |
|
Gross Profit |
|
1 166 000 |
|
Operating Expenses: |
|
|
|
Administrative expenses |
342 000 |
|
|
Distribution costs |
520 000 |
(862 000) |
|
Income from operations |
|
304 000 |
|
|
|
|
|
Other Revenues and Expenses |
|
|
|
Interest Income from Investments |
5 000 |
|
|
Interest expense |
(19 000) |
|
|
|
|
(14 000) |
|
Income from continuing operations before income taxes |
|
290 000 |
|
Income tax expense |
|
(104 000) |
|
Net Income |
|
186 000 |
Additional information:
(1) On 1 October 2020, Hollywood Estate issued additional shares at par.
(2) Property, plant and equipment disposed in the year had a carrying amount of $75 000; cash received on disposal was $98 000.
(3) Depreciation charge for the year on property, plant and equipment was $87 000.
(4) An interim dividend of $53 000 was paid during the year.
Required:
Complete the schedule provided to prepare a Statement of Cash Flows for the year ending 30 September 2021 using the Indirect Method for Hollywood Estate. When selecting from dropdown lists, if a line item does not apply, select NA and place zero in the field in the number column. Do not leave any number fields blank.
|
Hollywood Estate Statement of Cash Flows – Indirect Method For the year ended 30 September 2021 |
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Cash flows from operating activities |
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|
|
Net Income |
|
Answer |
|
Non-cash items: |
|
|
|
Answer |
Answer |
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|
Answer |
Answer |
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|
Answer |
Answer |
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|
Cash in (out) from operating |
|
|
|
Inventory Answer |
Answer |
|
|
Accounts Receivable Answer |
Answer |
|
|
Interest Receivable Answer |
Answer |
|
|
Investment Answer |
Answer |
|
|
Prepaid Expenses Answer |
Answer |
|
|
Accounts Payable Answer |
Answer |
|
|
Interest Payable Answer |
Answer |
|
|
Income Tax Payable Answer |
Answer |
|
|
Other Payables Answer |
Answer |
|
|
Net cash Answer by operating activities |
|
Answer |
|
|
|
|
|
Cash flows from investing activities |
|
|
|
Investment Answer |
Answer |
|
|
PPE Answer |
Answer |
|
|
PPE Answer |
Answer |
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Net cash Answer by investing activities |
|
Answer |
|
|
|
|
|
Cash flows from financing activities |
|
|
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Ordinary shares Answer |
Answer |
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10% Note Answer |
Answer |
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5% Note Answer |
Answer |
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Dividends Answer |
Answer |
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Net cash Answer by financing activities |
|
Answer |
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Net Answer in cash flows |
|
Answer |
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Cash, 30 September 2020 |
|
Answer |
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Cash, 30 September 2021 |
|
Answer |
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