Rose's Pty Ltd has the following data from its accounting records for the month ended 31 March 2021: Account 2$ Account $ Depreciation expense 26 400 Dividends paid 16 000 189 400 Acquisition of equipment Cash receipts from customers 25 000 Payment of wages 78 900 Interest received 1 700 Cash sales ? Payment to suppliers 162 300 Profit on sale of equipment 3 200 Tax paid to government 12 000 Payment of interest 19 400 Repayment of loan 17 400 The Net Cash Flow from Operating activities is $58,500, cash sales amount equals to: Select one: O a. 160,000 O b. 180,000 O c. 140,000 O d. 120,000

Rose's Pty Ltd has the following data from its accounting records for the month ended 31 March 2021: Account 2$ Account $ Depreciation expense 26 400 Dividends paid 16 000 189 400 Acquisition of equipment Cash receipts from customers 25 000 Payment of wages 78 900 Interest received 1 700 Cash sales ? Payment to suppliers 162 300 Profit on sale of equipment 3 200 Tax paid to government 12 000 Payment of interest 19 400 Repayment of loan 17 400 The Net Cash Flow from Operating activities is $58,500, cash sales amount equals to: Select one: O a. 160,000 O b. 180,000 O c. 140,000 O d. 120,000

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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Consider the following information from the Income Statement of Production Ltd. on 31st December 2022 (accounting year-end): Operating profit equals £30,000 and depreciation expense equals £2,000. In addition, consider the following information from the Statement of Financial Position of Production Ltd.: Trade Receivables Trade Payables 31st December 2021 31st December 2022 £ £ 2,500 9,000 32,000 12,000 Additional information: • Tax paid on cash during the current accounting year amounts to £12,500 • Gain on asset disposal equals £1,000. Considering all the previous information from Production Ltd., which of the following statements is true on 31st December 2022? O a. Production Ltd. shows a negative net cash flow from operating activities which equals -£8,000. O b. Production Ltd. shows a positive net cash flow from operating activities which equals £3,000. O c. The net cash flow from operating activities equals £0 O d. None of the answers is true.
The statement of financial position of Mackay Ltd as at 30 June 2021 showed the following assets and liabilities. Assets Cash Inventories Accounts Receivables Allowance for Doubtful Debts Plant Accumulated Depreciation- Plant Deferred Tax Asset Liabilities Accounts Payable Provision for Long Service Leave Provision for Annual Leave Rent Received in Advance Deferred Tax Liability Additional information 2021 8 000 17 000 50 000 (5 500) 50 000 (26 000) ? 29 000 6 000 4 000 2 500 ? 2020 8 500 15 500 48 000 (4 000) 50 000 (21 000) 4 050 26 000 4 500 3 000 2 000 3 150 • Accumulated depreciation of plant for tax purposes was $39 000 at 30 June 2021. • The tax rate is 30%. Required: Prepare the deferred tax worksheet and journal entries to adjust deferred tax accounts.
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The Statement of Financial Position of Oliver Ltd as at 30 June 2021 showed the following assets and liabilities. 2021 Assets 2$ Cash 3,000 Accounts receivables 85,000 Allowance for doubtful debts (4,000) Inventory 9,500 Prepaid insurance 3,600 Plant 60,000 Accumulated Depreciation - Plant (15,000) Deferred Tax Asset (at 30/06/2020: $1,270) ? Liabilities Accounts Payable 75,000 Provision for Long service leave 2,000 Revenue received in advance 3,000 Deferred Tax Liability (at 30/06/2020: $800) ? Additional information а. Accumulated depreciation of plant for tax purposes was $20,000 as at 30 June 2021. b. The tax rate is 30% Required Prepare the deferred tax worksheet and journal entries to adjust deferred tax accounts as at 30 June 2021.
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The following are the account balances of Cutis Ltd as at 31 October 2020: £Sales 75,000 Purchases 15,075 Salaries and wages expense 4,675 General distribution costs 2,900 Other administrative expenses 2,100 Loan interest expense paid 750 Land at valuation 200,000 Building at cost 150,000 Accumulated depreciation – building (30,000)Equipment at cost 50,000 Accumulated depreciation – equipment (22,700)Cash 1,300Accounts receivable 19,080Inventory as at 1 November 2019 875 Ordinary shares of £1 each 232,045 Retained earnings as at 1 November 2019 62,160 12% loan (due 31 October 2023) 12,500 Accounts payable 12,350Additional information:(i) The interest expenses on the loan are due half yearly on 1 November and 1 May. The first six months’ interest was paid.(ii) The corporation tax charge for the year is estimated at £6,500.(iii) The building is depreciated on a straight line method with an estimated useful life of 30 years with no residual value. The equipment is depreciated at 15% per…
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he following information is related to the Doll Pty Ltd. Description 2018 2020 Total revenues (Sales) $2,580 $5,880 Total assets: Beginning of year 1,200 2,290 End of year 1120 2,381 The ratio of sales to assets for 2018 and 2020 will be: Select one: a. 2.22 And 2.52 b. 2.30 And 2.47 c. 1.11 And 1.26 d. 2.15 And 2.56