Extract from the statement of P&L and OCI of Don Ltd for year ended 30 June 20X8 and the Balance Sheet at 30 June 20X7 and 20X8 are given below.     20X7 20X8 Sales   $2,120,000 Interest revenue   $3,000 Loss on sale of plant and equipment   ($25,000)       Current Assets     Interest receivable $1,500 $3,000 Non-current assets     Plant and equipment (at cost) $410,000 $425,000 (-) Accumulated depreciation ($85,000) ($102,000) Loan to CEO $60,000 $45,000 Current liabilities     Trade Payables $14,200 $34,250       Additional information:   On 1 January 20X8 Don Ltd sold plant and equipment with a carrying amount of $75,000 (cost $100,000) and received $50,000 cash. An item of plant and equipment was purchased on 29 June 20X8. Not all of this was paid for with cash. $30,000 of this amount was purchased on credit and is in the trade payables balance at 30 June 20X8. Don Ltd treats interest received as an investing activity.   Required: Calculate the following amounts for cash flow statement;                                          I.            Interest received                                          II.            Proceeds from sale of plant and equipment                                          III.            Loan to CEO                                         IV.            Purchase of plant and equipment                                          V.            Net cash flows from investment activi

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Extract from the statement of P&L and OCI of Don Ltd for year ended 30 June 20X8 and the Balance Sheet at 30 June 20X7 and 20X8 are given below.

 

 

20X7

20X8

Sales

 

$2,120,000

Interest revenue

 

$3,000

Loss on sale of plant and equipment

 

($25,000)

 

 

 

Current Assets

 

 

Interest receivable

$1,500

$3,000

Non-current assets

 

 

Plant and equipment (at cost)

$410,000

$425,000

(-) Accumulated depreciation

($85,000)

($102,000)

Loan to CEO

$60,000

$45,000

Current liabilities

 

 

Trade Payables

$14,200

$34,250

 

 

 

Additional information:

 

  • On 1 January 20X8 Don Ltd sold plant and equipment with a carrying amount of $75,000 (cost $100,000) and received $50,000 cash.
  • An item of plant and equipment was purchased on 29 June 20X8. Not all of this was paid for with cash. $30,000 of this amount was purchased on credit and is in the trade payables balance at 30 June 20X8.
  • Don Ltd treats interest received as an investing activity.

 

Required:

Calculate the following amounts for cash flow statement;

                                         I.            Interest received

                                         II.            Proceeds from sale of plant and equipment

                                         III.            Loan to CEO

                                        IV.            Purchase of plant and equipment

                                         V.            Net cash flows from investment activity

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