REQUIRED: Prepare a Statement of Cash Flows in the pro forma provided below and show all calculations (an answer without sup portin e calculations will re ceive z ero marks). a.
REQUIRED: Prepare a Statement of Cash Flows in the pro forma provided below and show all calculations (an answer without sup portin e calculations will re ceive z ero marks). a.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![QUESTION 4: Cash Flow Statement (cont.)
RETRO LOUNGE
Cash Flow Statement
for the year ended 30 June 2020
Cash Flows from Operating Activities
Receipts from Customers
Payments to Suppliers & Employees
Cash generated from operations
Interest Paid
Income Tax Paid
Interest Received
Cashflows from Operating Activities
Cashflows from Investing Activities
Purchase of Equipment
Proceeds from Sale of Land
Cashflows from Investing Activities
Cashflows from Financing Activities
Drawings
Net Increase (decrease) in cash held
Cash at start
Cash at end](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F17ecff1c-bdbc-418f-9021-ecec2b23b393%2F48998738-bc49-49bf-8311-44838cd5ae04%2Fasrrwr9_processed.png&w=3840&q=75)
Transcribed Image Text:QUESTION 4: Cash Flow Statement (cont.)
RETRO LOUNGE
Cash Flow Statement
for the year ended 30 June 2020
Cash Flows from Operating Activities
Receipts from Customers
Payments to Suppliers & Employees
Cash generated from operations
Interest Paid
Income Tax Paid
Interest Received
Cashflows from Operating Activities
Cashflows from Investing Activities
Purchase of Equipment
Proceeds from Sale of Land
Cashflows from Investing Activities
Cashflows from Financing Activities
Drawings
Net Increase (decrease) in cash held
Cash at start
Cash at end
![QUESTION 4: Cash Flow Statementl
Thelma Binkley is the sole proprietor of the Retro Lounge' a business that sells retro banana
lounges. Thelma is a good friend of both Ms Blake and Mr Jones and they frequently refer clients to
gach others business. They have been so impressed with the quality of accounting work done for
them by Michell & Co Accounting Specialists Pty Ltd and in particular with your work, that they have
suggested that Thelma come to see you for assistance in preparing the Cashflow Statement for the
"Retro Lounge'.
RETRO LO UNGE
COMPARATIVE BALANCE SHEETS
AS AT JUNE 30
2020
2019
Current Assets
$1 950
3 009
6 500
Cash on Hand
$8 898
Cash at Bank
Accounts Receivable (net)
33 200
Inventory
28 000
16 000
Prepaid Expenses
1 650
$71 748
700
$28 159
Non Current Assets
Plant & Equipment
83 500
64 000
60 500
80 000
46 400
180 000
less Acc. Depreciation
(23 000)
(17 600)
Land
Total Assets
212 248
254 559
Current Liabilities
Bank Overdraft
6 402
Accounts Payable
3 498
2 800
Expenses Payable
780
790
Таx Payable
13 790
24 470
1 200
4 790
Non Current Liabilities
Bank Loan
20 000
20 000
Total Liabilities
44 470
24 790
$167 778
$229 769
Net Assets
Equity
167 778
$167 778
229 769
$229 769
Capital
QUESTION 4: Cash Flow Statement (cont.)
RETRO LO UNGE
INCOME STATEMENT
FOR THE YEAR ENDED 30th JUNE 2020
Net Sales
$148 S00
Cost of Sales
45 200
Discount Received
280
Gross Profit:
103 580
Other Revenue:
Interest Revenue
83
83
123 644
Expenses:
Selling & Admin Expense
18 847
Doubtful Debts Expense
354
Depreciation Expense
5 400
Interest Expense
3 800
28 401
Profit before tax
75 262
16 278
$58 984
Income tax expense
Profit
Additional Information
The Land was sold for $100,000 cash.
ANSWER THIS QUESTION ON THE PRO FORMA PROVIDED
REQUIRED:
Prepare a Statement of Cash Flows in the pro forma provided below and show all calculations (an
answer without supporting calculations will receive zero marks).
a.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F17ecff1c-bdbc-418f-9021-ecec2b23b393%2F48998738-bc49-49bf-8311-44838cd5ae04%2Fsmyw69o_processed.jpeg&w=3840&q=75)
Transcribed Image Text:QUESTION 4: Cash Flow Statementl
Thelma Binkley is the sole proprietor of the Retro Lounge' a business that sells retro banana
lounges. Thelma is a good friend of both Ms Blake and Mr Jones and they frequently refer clients to
gach others business. They have been so impressed with the quality of accounting work done for
them by Michell & Co Accounting Specialists Pty Ltd and in particular with your work, that they have
suggested that Thelma come to see you for assistance in preparing the Cashflow Statement for the
"Retro Lounge'.
RETRO LO UNGE
COMPARATIVE BALANCE SHEETS
AS AT JUNE 30
2020
2019
Current Assets
$1 950
3 009
6 500
Cash on Hand
$8 898
Cash at Bank
Accounts Receivable (net)
33 200
Inventory
28 000
16 000
Prepaid Expenses
1 650
$71 748
700
$28 159
Non Current Assets
Plant & Equipment
83 500
64 000
60 500
80 000
46 400
180 000
less Acc. Depreciation
(23 000)
(17 600)
Land
Total Assets
212 248
254 559
Current Liabilities
Bank Overdraft
6 402
Accounts Payable
3 498
2 800
Expenses Payable
780
790
Таx Payable
13 790
24 470
1 200
4 790
Non Current Liabilities
Bank Loan
20 000
20 000
Total Liabilities
44 470
24 790
$167 778
$229 769
Net Assets
Equity
167 778
$167 778
229 769
$229 769
Capital
QUESTION 4: Cash Flow Statement (cont.)
RETRO LO UNGE
INCOME STATEMENT
FOR THE YEAR ENDED 30th JUNE 2020
Net Sales
$148 S00
Cost of Sales
45 200
Discount Received
280
Gross Profit:
103 580
Other Revenue:
Interest Revenue
83
83
123 644
Expenses:
Selling & Admin Expense
18 847
Doubtful Debts Expense
354
Depreciation Expense
5 400
Interest Expense
3 800
28 401
Profit before tax
75 262
16 278
$58 984
Income tax expense
Profit
Additional Information
The Land was sold for $100,000 cash.
ANSWER THIS QUESTION ON THE PRO FORMA PROVIDED
REQUIRED:
Prepare a Statement of Cash Flows in the pro forma provided below and show all calculations (an
answer without supporting calculations will receive zero marks).
a.
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