Statements of Financial Position for Tyler Ltd as at 30 June 2021 and 30 June 2020 are provided below: Tyler Ltd Statement of Financial Position as at 30 June 2021 2020 Assets $ $ Cash at bank 110,000 38,400 Accounts Receivable 92,800 35,000 Inventory 112,500 102,850 Prepaid Expenses 18,400 14,000 Machinery and Equipment 310,000 282,500 Less: Accumulated Depreciation -50,000 -52,000 Total Assets 593,700 420,750 Liabilities Accounts Payable 92,000 67,300 Accrued Expenses 16,700 17,000 Notes payable 125,000 130,000 Total Liabilities 233,700 214,300 Shareholders' Equity Share Capital 126,000 101,000 Retained Earnings 234,000 105,450 Total Shareholders' Equity 360,000 206,450 Total Liabilities and Shareholders' Equity 593,700 420,750 The Income Statement of Tyler Ltd for the financial year ended 30 June 2021 is provided below: Tyler Ltd Income Statement for the year ended 30 June 2021 $ Sales 372,000 Less: Cost of sales 130,460 Depreciation Expense 46,500 Other Operating Expense 27,410 Loss on sale of equipment 7,500 Total Expenses 211,870 Profit 160,130 (Question 2 continued on the next page) QUESTION 2 (Continued) Additional Information: New machinery was purchased for cash during the year. No sale of machinery took place during the year. Equipment having an original cost of $57,500 was sold for cash during the year. Accumulated depreciation of the equipment sold was $48,500 at the point of sale. Cash dividend was declared and paid during the year. Additional shares were issued for cash during the year. All sales and purchases were made on credit throughout the year ending 30 June 2021. Accounts Payable reflects inventory purchases on credit from suppliers. REQUIRED: Prepare a fully classified Statement of Cash Flows for Tyler Ltd for the year ended 30 June 2021, using the direct method to present cash flows.

Statements of Financial Position for Tyler Ltd as at 30 June 2021 and 30 June 2020 are provided below: Tyler Ltd Statement of Financial Position as at 30 June 2021 2020 Assets $ $ Cash at bank 110,000 38,400 Accounts Receivable 92,800 35,000 Inventory 112,500 102,850 Prepaid Expenses 18,400 14,000 Machinery and Equipment 310,000 282,500 Less: Accumulated Depreciation -50,000 -52,000 Total Assets 593,700 420,750 Liabilities Accounts Payable 92,000 67,300 Accrued Expenses 16,700 17,000 Notes payable 125,000 130,000 Total Liabilities 233,700 214,300 Shareholders' Equity Share Capital 126,000 101,000 Retained Earnings 234,000 105,450 Total Shareholders' Equity 360,000 206,450 Total Liabilities and Shareholders' Equity 593,700 420,750 The Income Statement of Tyler Ltd for the financial year ended 30 June 2021 is provided below: Tyler Ltd Income Statement for the year ended 30 June 2021 $ Sales 372,000 Less: Cost of sales 130,460 Depreciation Expense 46,500 Other Operating Expense 27,410 Loss on sale of equipment 7,500 Total Expenses 211,870 Profit 160,130 (Question 2 continued on the next page) QUESTION 2 (Continued) Additional Information: New machinery was purchased for cash during the year. No sale of machinery took place during the year. Equipment having an original cost of $57,500 was sold for cash during the year. Accumulated depreciation of the equipment sold was $48,500 at the point of sale. Cash dividend was declared and paid during the year. Additional shares were issued for cash during the year. All sales and purchases were made on credit throughout the year ending 30 June 2021. Accounts Payable reflects inventory purchases on credit from suppliers. REQUIRED: Prepare a fully classified Statement of Cash Flows for Tyler Ltd for the year ended 30 June 2021, using the direct method to present cash flows.

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

Statements of Financial Position for Tyler Ltd as at 30 June 2021 and 30 June 2020 are provided below:

Tyler Ltd Statement of Financial Position as at 30 June

	2021	2020
Assets	$	$
Cash at bank	110,000	38,400
Accounts Receivable	92,800	35,000
Inventory	112,500	102,850
Prepaid Expenses	18,400	14,000
Machinery and Equipment	310,000	282,500
Less: Accumulated Depreciation	-50,000	-52,000
Total Assets	593,700	420,750
Liabilities
Accounts Payable	92,000	67,300
Accrued Expenses	16,700	17,000
Notes payable	125,000	130,000
Total Liabilities	233,700	214,300
Shareholders' Equity
Share Capital	126,000	101,000
Retained Earnings	234,000	105,450
Total Shareholders' Equity	360,000	206,450
Total Liabilities and Shareholders' Equity	593,700	420,750

The Income Statement of Tyler Ltd for the financial year ended 30 June 2021 is provided below:

Tyler Ltd Income Statement for the year ended 30 June 2021 $
Sales		372,000
Less:
Cost of sales	130,460
Depreciation Expense	46,500
Other Operating Expense	27,410
Loss on sale of equipment	7,500
Total Expenses		211,870
Profit		160,130

(Question 2 continued on the next page)

QUESTION 2 (Continued)

Additional Information:

New machinery was purchased for cash during the year. No sale of machinery took place during the year.
Equipment having an original cost of $57,500 was sold for cash during the year. Accumulated depreciation of the equipment sold was $48,500 at the point of sale.
Cash dividend was declared and paid during the year.
Additional shares were issued for cash during the year.
All sales and purchases were made on credit throughout the year ending 30 June 2021.
Accounts Payable reflects inventory purchases on credit from suppliers.

REQUIRED:

Prepare a fully classified Statement of Cash Flows for Tyler Ltd for the year ended 30 June 2021, using the direct method to present cash flows.

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