Question 2 The balances in the accounts of Forrest Ltd at 30 June 2021 and 30 June 20 2021 ($) 2022 ($)
Question 2 The balances in the accounts of Forrest Ltd at 30 June 2021 and 30 June 20 2021 ($) 2022 ($)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Question 2
The balances in the accounts of Forrest Ltd at 30 June 2021 and 30 June 2022 are as follows:
2021 ($)
2022 ($)
Sales (all on credit)
250,000
350,000
Cost of goods sold
130,000
110,000
Doubtful debts expense
25,000
30,000
Interest expense
20,000
30,000
Salaries
30,000
25,000
Depreciation
10,000
15,000
Cash
144,000
139,000
Inventory
180,000
160,000
Accounts receivable
270,000
250,000
Allowance for doubtful debts
30,000
35,000
Land
150,000
150,000
Plant
100,000
90,000
Accumulated depreciation
20,000
30,000
Bank overdraft
20,000
19,000
Accounts payable
200,000
190,000
Accrued salaries
22,000
18,000
Long-term loan
90,000
70,000
Share capital
120,000
140,000
Opening retained earnings
307,000
167,000
Share capital is increased by a bonus issue of 20 000 shares for $1.00 each out of retained
earnings. Plant is acquired during the period at a cost of $10 000, while plant with a carrying
amount of $nil (cost of $20 000; accumulated depreciation of $20 000) is scrapped.
Required
Prepare a statement of cash flows for Forrest Ltd for the year ending 30 June 2022. Notes
are not required. Show all workings and calculations.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F548331fc-e55e-4169-87bb-59aeb2c5df78%2Fcfe05d81-9ce2-442d-92a6-130673fe3847%2F0rqhm77_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 2
The balances in the accounts of Forrest Ltd at 30 June 2021 and 30 June 2022 are as follows:
2021 ($)
2022 ($)
Sales (all on credit)
250,000
350,000
Cost of goods sold
130,000
110,000
Doubtful debts expense
25,000
30,000
Interest expense
20,000
30,000
Salaries
30,000
25,000
Depreciation
10,000
15,000
Cash
144,000
139,000
Inventory
180,000
160,000
Accounts receivable
270,000
250,000
Allowance for doubtful debts
30,000
35,000
Land
150,000
150,000
Plant
100,000
90,000
Accumulated depreciation
20,000
30,000
Bank overdraft
20,000
19,000
Accounts payable
200,000
190,000
Accrued salaries
22,000
18,000
Long-term loan
90,000
70,000
Share capital
120,000
140,000
Opening retained earnings
307,000
167,000
Share capital is increased by a bonus issue of 20 000 shares for $1.00 each out of retained
earnings. Plant is acquired during the period at a cost of $10 000, while plant with a carrying
amount of $nil (cost of $20 000; accumulated depreciation of $20 000) is scrapped.
Required
Prepare a statement of cash flows for Forrest Ltd for the year ending 30 June 2022. Notes
are not required. Show all workings and calculations.
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