SydMel LtdStatement of financial positionAs of 30 June 2020. 20202019Assets Cash at Bank18000-Account Receivable3400028000Inventories11200096000Land4000080000Buildings120000120000Accumulated depreciation-Buildings(10000)(6000)Equipment7200060000Accumulated depreciation-Equipment(30000)(18000)Total assets356000360500Liabilities Account Payables5200048000Bank Overdraft-20000Equity Share Capital214000200000Retained Earnings 9000092500Total liabilities and equity356000360500 SydMel LtdStatement of profit and loss and other comprehensive incomeFor the year ended 30 June 2020. 2020income$$Sales revenue-445500Less: expenses Cost of sales288000 Employee expenses78000 Interest expenses5000 Loss on sale of land6250 Depreciation expenses-buildings5000 Depreciation expenses-equipment15000412250Profit for the year 33250 Additional informationDuring the year ended 30 june 2020 cash dividend were paid to shareholders.Building expenses were paid for during the year and a block of land costing 37320 was sold for 31250No plant was purchased or sold during the year.RequiredPrepare reconciliation note for disclosure of cash flow from oprating activities with profit.

The question is related to Cash flow from operating activities from the given Income Statement and…

Answered: SydMel Ltd Statement of financial…

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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SydMel Ltd

Statement of financial position

As of 30 June 2020.

	2020	2019
Assets
Cash at Bank	18000	-
Account Receivable	34000	28000
Inventories	112000	96000
Land	40000	80000
Buildings	120000	120000
Accumulated depreciation-Buildings	(10000)	(6000)
Equipment	72000	60000
Accumulated depreciation-Equipment	(30000)	(18000)
Total assets	356000	360500
Liabilities
Account Payables	52000	48000
Bank Overdraft	-	20000
Equity
Share Capital	214000	200000
Retained Earnings	90000	92500
Total liabilities and equity	356000	360500

SydMel Ltd

Statement of profit and loss and other comprehensive income

For the year ended 30 June 2020.

		2020
income	$	$
Sales revenue	-	445500
Less: expenses
Cost of sales	288000
Employee expenses	78000
Interest expenses	5000
Loss on sale of land	6250
Depreciation expenses-buildings	5000
Depreciation expenses-equipment	15000	412250
Profit for the year		33250

Additional information

During the year ended 30 june 2020 cash dividend were paid to shareholders.
Building expenses were paid for during the year and a block of land costing 37320 was sold for 31250
No plant was purchased or sold during the year.

Required

Prepare reconciliation note for disclosure of cash flow from oprating activities with profit.

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