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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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
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.
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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