The accounting records of JasonJohnson Company provided the data below for years ending 30 June 2022 and 30 June 2021: 2022 2021 $ $ Sales (all on credit) for the year 950,000 Cost of goods sold for the year 380,000 Discount provided to customers for early payment 3,500 Bad debts expense for the year 2,500 Depreciation expense 55,000 Net profit 509,000
The accounting records of JasonJohnson Company provided the data below for years ending 30 June 2022 and 30 June 2021:
|
|
2022 |
2021 |
|
|
$ |
$ |
|
Sales (all on credit) for the year |
950,000 |
|
|
Cost of goods sold for the year |
380,000 |
|
|
Discount provided to customers for early payment |
3,500 |
|
|
|
2,500 |
|
|
|
55,000 |
|
|
Net profit |
509,000 |
|
|
|
|
|
|
|
30 June 2022 |
30 June 2021 |
|
|
$ |
$ |
|
|
160,000 |
140,000 |
|
Less: Allowance for doubtful debts |
4,500 |
4,200 |
|
|
155,500 |
135,800 |
|
Inventory |
88,360 |
62,200 |
|
Accounts payable |
55,500 |
47,700 |
Required:
a. Based on the information given, prepare the section of
b. Prepare a reconciliation of net profit to net cash flows from operating activities.
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