Financial figures of the business of Outback Car Rentals are shown below. Reporting date is 30 June. Outback Car Rentals Comparative Statements of Financial Position as at 30 June 2017 ASSETS Cash at bank Accounts receivable Inventory Plant and equipment $9,000 Accumulated depreciation - plant and equipment $4,200 $4,800 Land $12,000 Buildings Accumulated depreciation - buildings LIABILITIES AND EQUITY Accounts payable Bank overdraft Capital $4,200 $14,400 $12,000 INCOME Sales revenue OTHER INCOME Gain from sale of land $600 $11,400 $46,800 $7,200 $3,000 $36,600 $46 800 $10 800 $4,500 EXPENSES Cost of sales $9,600 Depreciation of plant and equipment $1,200 Depreciation of buildings $240 Loss of sale of plant $180 Salary expense $2,640 PROFIT $12,000 $840 $18,000 $2,400 $20,400 2018 The income statement for the business for the year ended 30 June 2018 reveals the following detail Outback Car Rentals Income Statement for the year ended 30 June 2018 $13,860 $6,540 $4,020 $5,100 $16,800 $6,300 $6,000 $11,160 $49,380 $7,800 $41,580 $49,380 Additional information (a) During the year ended 30 June 2018, the owner of the business with drew $30 per week in ca for 52 weeks for private purposes. (b) Land, shown in the accounts at $6000, was sold during the year for $8400. (c) Plant costing $1800 and written down to $900 was sold for $720. (d) Salary was paid in cash. (e) Ignore GST. Required: Prepare the statement of cash flows for Outback Car Rentals for the year ended 30 June 2018, usin the direct method.
Financial figures of the business of Outback Car Rentals are shown below. Reporting date is 30 June. Outback Car Rentals Comparative Statements of Financial Position as at 30 June 2017 ASSETS Cash at bank Accounts receivable Inventory Plant and equipment $9,000 Accumulated depreciation - plant and equipment $4,200 $4,800 Land $12,000 Buildings Accumulated depreciation - buildings LIABILITIES AND EQUITY Accounts payable Bank overdraft Capital $4,200 $14,400 $12,000 INCOME Sales revenue OTHER INCOME Gain from sale of land $600 $11,400 $46,800 $7,200 $3,000 $36,600 $46 800 $10 800 $4,500 EXPENSES Cost of sales $9,600 Depreciation of plant and equipment $1,200 Depreciation of buildings $240 Loss of sale of plant $180 Salary expense $2,640 PROFIT $12,000 $840 $18,000 $2,400 $20,400 2018 The income statement for the business for the year ended 30 June 2018 reveals the following detail Outback Car Rentals Income Statement for the year ended 30 June 2018 $13,860 $6,540 $4,020 $5,100 $16,800 $6,300 $6,000 $11,160 $49,380 $7,800 $41,580 $49,380 Additional information (a) During the year ended 30 June 2018, the owner of the business with drew $30 per week in ca for 52 weeks for private purposes. (b) Land, shown in the accounts at $6000, was sold during the year for $8400. (c) Plant costing $1800 and written down to $900 was sold for $720. (d) Salary was paid in cash. (e) Ignore GST. Required: Prepare the statement of cash flows for Outback Car Rentals for the year ended 30 June 2018, usin the direct method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Financial figures of the business of Outback Car Rentals are shown below. Reporting date is 30
June.
Outback Car Rentals
Comparative Statements of Financial Position as at 30 June
2017
ASSETS
Cash at bank
Accounts receivable
Inventory
Plant and equipment
$9,000
Accumulated depreciation - plant and equipment $4,200 $4,800
Land
$12,000
Buildings
Accumulated depreciation - buildings
LIABILITIES AND EQUITY
Accounts payable
Bank overdraft
Capital
$4,200
$14,400
$12,000
$600
INCOME
Sales revenue
OTHER INCOME
Gain from sale of land
$11,400
$46,800
$7,200
$3,000
$36,600
$46 800
$10 800
$4,500
EXPENSES
Cost of sales
$9,600
Depreciation of plant and equipment $1,200
Depreciation of buildings
$240
Loss of sale of plant
$180
$2,640
Salary expense
PROFIT
$12,000
$840
$18,000
$2,400
$20,400
$13,860
$6.540
2018
The income statement for the business for the year ended 30 June 2018 reveals the following details:
Outback Car Rentals
Income Statement
for the year ended 30 June 2018
$4,020
$5,100
$16,800
(b) Land, shown in the accounts at $6000, was sold during the year for $8400.
(c) Plant costing $1800 and written down to $900 was sold for $720.
(d) Salary was paid in cash.
(e) Ignore GST.
$6,300
$6,000
$11,160
$49,380
$7,800
$41,580
$49,380
Additional information
(a) During the year ended 30 June 2018, the owner of the business with drew $30 per week in cash
for 52 weeks for private purposes.
Required:
Prepare the statement of cash flows for Outback Car Rentals for the year ended 30 June 2018, using
the direct method.
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