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Important Note: The sale of equipment (piece A) had a historical cost of $20,000 and accumulated depreciation of $10,000. It was sold for cash of $10,000.

GST is not included so ignore the GST component of transactions.

Prepare a Statement of Cash Flows for the year ended 30 June 2016 in accordance with accounting standards.

Prepare a statement reconciling cash flows from operating activities with profit.

The following are the financial statements of North Point Enterprises for the year ended 30 June 2016

North Point Enterprises Ltd

Income Statement

for year ended 30 June 16 $ $ Sales 250,000 Less Cost of Goods Sold Inventories (1/7/15) 14,500 Purchases 135,000 149,500 Less Inventories (30/6/16) 8,000 141,500 108,500 Less Operating expenses Advertising 12,300 Wages 28,000 Loss on sales of equipment (piece B) 2,000 Depreciation of equipment 12,000 Depreciation of Motor Vehicle 8,000 62,300 North Point Enterprises Ltd Balance Sheet 2016 2015 Current Assets $ $ $ $ Cash at Bank 55,000 21,500 Inventories 8,000 14,500 Accounts Receivable 78,700 42,300 Prepaid Advertising 3,200 1,200 144,900 79,500 Non-Current Assets Equipment 46,500 66,500 Less Accum Depreciation 22,000 24,500 18,000 48,500 Motor Vehicles 44,000 44,000 Less Accum Depreciation 26,000 18,000 18,000 26,000 Total Non-Current Assets 42,500 74,500 TOTAL ASSET 187,400 154,000 Less Current Liabilities Accounts Payable 34,900 57,700 Net Assets $ 152,500 $ 96,300 Owner's Equity Paid up Capital 95,300 85,300 Retained Profit 57,200 11,000 $152,500 $96,300 $46,200

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