The following information is from Best Ltd's Statement of Financial Position as at 30 June 2020: 2019 2020 Current assets Cash $8,000 $29,000 Accounts receivable 42,000 38,000 Allowance for doubtful debts (2,400) (4,000) Inventory 34,000 40,000 Prepaid insurance 12,000 4,000 Non-current assets Land 72,000 84,000 Buildings 102,000 108,000 Accumulated depreciation-building (42,000) (46,000) Equipment 56,000 50,000 Accumulated depreciation- equipment (18,000) (22,000) Current liabilities Accounts payable 38,000 34,000 Accrued expense payable 15,000 16,000 Income tax payable 9,000 18,400 Final dividend payable 8,000 10,000 Non-current liabilities Notes payable 82,000 62,000 Equity Share capital 70,000 80,000 General reserve 16,600 30,600 Retained earnings 25,000 30,000 The following information is from Best Ltd's Statement of Profit or Loss for the financial year ended 30 June 2020: Sales revenue $124,000 Gain on sale of land 4,000 Gain on sale of equipment 4,000 132,000 Less Cost of sales 48,000 Insurance expense 8,000 Bad debts expense 2,400 Depreciation expense 18,000 Other expense 5,600 82,000 Profit before income tax expense 50,000 Less Income tax expense 22,000 Profit for the period 28,000 Additional information: No building was disposed off during the current financial year. A block of land with a cost of $16,000 was sold for $20,000. Equipment to the value of $4000 and buildings to the value of $6000 were acquired with the issue of a long-term note. The amount payable has been included in notes payable on the statement of financial position. A transfer was made from retained earnings to general reserve. Required: 1.What is the amount of cash receipts from customers during the 2020 financial year? (Input a positive number only, no dollar sign) 2. What is the amount of cash payment to suppliers during the 2020 financial year? 3. What is the amount of cash payment for other operating expenses during the 2020 financial year?

The following information is from Best Ltd's Statement of Financial Position as at 30 June 2020: 2019 2020 Current assets Cash $8,000 $29,000 Accounts receivable 42,000 38,000 Allowance for doubtful debts (2,400) (4,000) Inventory 34,000 40,000 Prepaid insurance 12,000 4,000 Non-current assets Land 72,000 84,000 Buildings 102,000 108,000 Accumulated depreciation-building (42,000) (46,000) Equipment 56,000 50,000 Accumulated depreciation- equipment (18,000) (22,000) Current liabilities Accounts payable 38,000 34,000 Accrued expense payable 15,000 16,000 Income tax payable 9,000 18,400 Final dividend payable 8,000 10,000 Non-current liabilities Notes payable 82,000 62,000 Equity Share capital 70,000 80,000 General reserve 16,600 30,600 Retained earnings 25,000 30,000 The following information is from Best Ltd's Statement of Profit or Loss for the financial year ended 30 June 2020: Sales revenue $124,000 Gain on sale of land 4,000 Gain on sale of equipment 4,000 132,000 Less Cost of sales 48,000 Insurance expense 8,000 Bad debts expense 2,400 Depreciation expense 18,000 Other expense 5,600 82,000 Profit before income tax expense 50,000 Less Income tax expense 22,000 Profit for the period 28,000 Additional information: No building was disposed off during the current financial year. A block of land with a cost of $16,000 was sold for $20,000. Equipment to the value of $4000 and buildings to the value of $6000 were acquired with the issue of a long-term note. The amount payable has been included in notes payable on the statement of financial position. A transfer was made from retained earnings to general reserve. Required: 1.What is the amount of cash receipts from customers during the 2020 financial year? (Input a positive number only, no dollar sign) 2. What is the amount of cash payment to suppliers during the 2020 financial year? 3. What is the amount of cash payment for other operating expenses during the 2020 financial year?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

The following information is from Best Ltd's Statement of Financial Position as at 30 June 2020:

	2019	2020
Current assets
Cash	$8,000	$29,000
Accounts receivable	42,000	38,000
Allowance for doubtful debts	(2,400)	(4,000)
Inventory	34,000	40,000
Prepaid insurance	12,000	4,000
Non-current assets
Land	72,000	84,000
Buildings	102,000	108,000
Accumulated depreciation-building	(42,000)	(46,000)
Equipment	56,000	50,000
Accumulated depreciation- equipment	(18,000)	(22,000)
Current liabilities
Accounts payable	38,000	34,000
Accrued expense payable	15,000	16,000
Income tax payable	9,000	18,400
Final dividend payable	8,000	10,000
Non-current liabilities
Notes payable	82,000	62,000
Equity
Share capital	70,000	80,000
General reserve	16,600	30,600
Retained earnings	25,000	30,000

The following information is from Best Ltd's Statement of Profit or Loss for the financial year ended 30 June 2020:

Sales revenue	$124,000
Gain on sale of land	4,000
Gain on sale of equipment	4,000
	132,000
Less
Cost of sales	48,000
Insurance expense	8,000
Bad debts expense	2,400
Depreciation expense	18,000
Other expense	5,600
	82,000
Profit before income tax expense	50,000
Less
Income tax expense	22,000
Profit for the period	28,000

Additional information:

No building was disposed off during the current financial year.
A block of land with a cost of $16,000 was sold for $20,000.
Equipment to the value of $4000 and buildings to the value of $6000 were acquired with the issue of a long-term note. The amount payable has been included in notes payable on the statement of financial position.
A transfer was made from retained earnings to general reserve.

Required:

1.What is the amount of cash receipts from customers during the 2020 financial year? (Input a positive number only, no dollar sign)

2. What is the amount of cash payment to suppliers during the 2020 financial year?

3. What is the amount of cash payment for other operating expenses during the 2020 financial year?

4. What is the amount of income tax paid during the 2020 financial year?

5. What is the amount of cash purchase of a block of land during the 2020 financial year?

6. What is the amount of cash proceeds from sale of a block of land during the 2020 financial year?

7. What is the amount of cash proceeds from sale of equipment during the 2020 financial year?

8. What is the amount of cash proceeds from issuing shares during the 2020 financial year?

9. What is the amount of cash outflow to repay note payable during the 2020 financial year?

10. What is the amount of dividend paid during the 2020 financial year?

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.