For the year ended 30 June 2022, the following information is available for X-ray Ltd: 2022 2021 Dividend receivable 5,200 4,400 Land 240,000 100,000 Buildings 1,200,000 500,000 Accumulated depreciation-buildings (200,000) (150,000) Machinery 45,000 38,000 Accumulated depreciation-machinery (13,100) (7,200) Asset revaluation surplus - land 28,000 0 Additional information: a) Dividend revenue for the year was $3,500. b) Depreciation expense on machinery for the year $7,500. c) Land was revalued at the end of the year. This resulted in the recognition of an revaluation surplus. Land was also purchased. d) Buildings were purchased during the year. This was paid for by issuing $200,000 worth of shares and the balance paid in cash. e) Machinery with a cost of $8 000 was sold for cash during the year. A gain on sal $4,000 was recorded. New machinery was purchased for cash. f) The tax rate is 30% Required: a) Calculate net cash used in investing activities (assume the company shows dividends received in investing activities). b) Present the cash flows in the correct format.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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For the year ended 30 June 2022, the following information is available for X-ray Ltd:
2022
2021
Dividend receivable
5,200
4,400
Land
240,000
100,000
Buildings
1,200,000
500,000
Accumulated depreciation-buildings
(200,000)
(150,000)
Machinery
45,000
38,000
Accumulated depreciation-machinery
(13,100)
(7,200)
28,000
0
Asset revaluation surplus - land
Additional information:
a) Dividend revenue for the year was $3,500.
b) Depreciation expense on machinery for the year $7,500.
c)
Land was revalued at the end of the year. This resulted in the recognition of an asset
revaluation surplus. Land was also purchased.
d) Buildings were purchased during the year. This was paid for by issuing $200,000
worth of shares and the balance paid in cash.
e) Machinery with a cost of $8 000 was sold for cash during the year. A gain on sale of
$4,000 was recorded. New machinery was purchased for cash.
f) The tax rate is 30%
Required:
a) Calculate net cash used in investing activities (assume the company shows
dividends received in investing activities).
b) Present the cash flows in the correct format.
Transcribed Image Text:For the year ended 30 June 2022, the following information is available for X-ray Ltd: 2022 2021 Dividend receivable 5,200 4,400 Land 240,000 100,000 Buildings 1,200,000 500,000 Accumulated depreciation-buildings (200,000) (150,000) Machinery 45,000 38,000 Accumulated depreciation-machinery (13,100) (7,200) 28,000 0 Asset revaluation surplus - land Additional information: a) Dividend revenue for the year was $3,500. b) Depreciation expense on machinery for the year $7,500. c) Land was revalued at the end of the year. This resulted in the recognition of an asset revaluation surplus. Land was also purchased. d) Buildings were purchased during the year. This was paid for by issuing $200,000 worth of shares and the balance paid in cash. e) Machinery with a cost of $8 000 was sold for cash during the year. A gain on sale of $4,000 was recorded. New machinery was purchased for cash. f) The tax rate is 30% Required: a) Calculate net cash used in investing activities (assume the company shows dividends received in investing activities). b) Present the cash flows in the correct format.
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