The following information was taken from the comparative financial statements of Rosso's Hardware Store prepared on an accrual basis: ROSSO'S HARDWARE STORE Comparative Financial Statements 2013 2012 Sales revenue $870 000 $810 000 Cost of sales $340 000 $319 500 Expenses (including Depreciation Expense of $63 000 p.a.) $333 000 $315 000 Profit $180 000 S175 500 Year-end accounts receivable $166 500 S150 000 Year-end inventory $117 000 $137 000 $ 70 000 $ 35 Year-end accounts payable $76 500 Year-end wages payable 22 500 $ 35 000 Required Part (a) - Prepare a schedule to show the net cash flow provided by Operating Activities during 2013 in accordance with AASB 107 - Cash Flow Statements. Assume there is no income tax, GST. or write-off of bad debts.
The following information was taken from the comparative financial statements of Rosso's Hardware Store prepared on an accrual basis: ROSSO'S HARDWARE STORE Comparative Financial Statements 2013 2012 Sales revenue $870 000 $810 000 Cost of sales $340 000 $319 500 Expenses (including Depreciation Expense of $63 000 p.a.) $333 000 $315 000 Profit $180 000 S175 500 Year-end accounts receivable $166 500 S150 000 Year-end inventory $117 000 $137 000 $ 70 000 $ 35 Year-end accounts payable $76 500 Year-end wages payable 22 500 $ 35 000 Required Part (a) - Prepare a schedule to show the net cash flow provided by Operating Activities during 2013 in accordance with AASB 107 - Cash Flow Statements. Assume there is no income tax, GST. or write-off of bad debts.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:The following information was taken from the comparative financial statements of Rosso's
Hardware Store prepared on an accrual basis:
ROSSO'S HARDWARE STORE
Comparative Financial Statements
2013
2012
Sales revenue
$870 000
$810 000
Cost of sales
$340 000
$319 500
Expenses (including Depreciation Expense of $63 000 p.a.) $333 000
$315 000
Profit
$180 000
$175 500
Year-end accounts receivable
$166 500
$150 000
Year-end inventory
$117 000
$137 000
$ 76 500
$ 22 500
Year-end accounts payable
$ 70 000
Year-end wages payable
S 35 000
Required
Part (a) - Prepare a schedule to show the net cash flow provided by Operating Activities during
2013 in accordance with AASB 107- Cash Flow Statements. Assume there is no income tax,
GST or write-off of bad debts.
Part (b) – Classify the following items into either Operating, Investing or Financing Activitics
and indicate whether they represent a Cash Inflow or Cash Outflow. (If any item does not
appear in the Cash Flow Statement, this should be specified in your answer.)
1. Cash Received from Debtors S753,000.
2. Shares Issued to Shareholders $500,000.
3. Purchase of new Equipment $150,000.
4. Amortisation of Patents $36,000.
5. Repayment of Mortgage Loan $200,000.
6. Sale of Land & Buildings $900,000.
7. Payment of Wages S85,000.
8. Interest received on Term Deposits $7,000.
9. Cash paid to Creditors $333,000.
10. Depreciation of Motor Vehicles $29,000.
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