Fenny Ltd.s comparative statements of financial position and statement of profit or loss and other...
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Accounting
Fenny Ltd.s comparative statements of financial position and statement of profit or loss and other comprehensive income for the year ended 30 June 2017 are shown below:
Fenny Ltd
Comparative Statement of Financial Position as of 30 June 2017
30-Jun-17
30-Jun-16
$
$
Cash at Bank
100 800
67 800
Accounts Receivable
49 300
37 800
Allowance for Doubtful Debts
-2 500
46 800
-1 900
35 900
Inventories
94 200
96 600
Interest Receivable
1 600
1 800
Prepaid Expenses
10 800
4 200
CURRENT ASSETS
254 200
206 300
Land at cost
70 000
70 000
Equipment at cost
180 000
154 800
Accumulated depreciation Equipment
-57 900
122 100
-69 600
85 200
Building at cost
360 000
240 000
Accumulated depreciation- building
-104 400
255 600
-94 500
145 500
Long term Investments
35 600
67 800
NON-CURRENT ASSETS
483 300
368 500
TOTAL ASSETS
737 500
574 800
Accounts payable
100 520
93 960
Accrued Expenses
9 780
8 340
Interest Payable
4 000
3 000
Dividend Payable
34 800
32 000
Current tax liability
14 400
15 000
CURRENT LIABILITIES
163 500
152 300
Mortgage Loan
40 000
-
Debentures
193 000
170 000
NON-CURRENT LIABILITIES
233 000
170 000
TOTAL LIABILITIES
396 500
322 300
NET ASSETS
341 000
252 500
Share capital
295 440
184 900
Retained earnings
45 560
67 600
TOTAL EQUITY
341 000
252 500
Statement of Profit or Loss and Other Comprehensive Income
for the year ended 30 June 2017
INCOME
Sales
$1 386 000
Interest Income
4 360
Dividend Income
7 200
Discount Received
2 100
Gain on Sale of Long Term Investments
22 600
1 422 260
Less: EXPENSES
Cost of Sales
932 000
Bad Debts Expense
2 800
Loss on Sale of Equipment
1 600
Discount Allowed
950
Depreciation Expense - Buildings
9 900
Depreciation Expense - Equipment
10 500
Interest Expense
18 400
Other Expenses
418 950
1 395 100
Profit before tax
27 160
Less: Income Tax Expense
14 400
PROFIT AFTER TAX
$12 760
Additional Information
New equipment was purchased at a cost of $67 400 paid in cash.
Equipment that had cost $42 200 and had a carrying amount of $20 000 was sold for cash.
Additions to the buildings were paid in cash $80 000 and the balance was funded by a mortgage loan.
Debentures were issued for cash.
Long Term Investments with a carrying amount of $32 200 were sold for cash at a profit of $22 600.
Dividends were paid during the year in cash.
Shares were issued for cash.
Hi there can you help me with the calculation
Required:
From the data presented above, prepare the statement of cash flows for the year ended 30 June 2017, using the direct method.
Answer & Explanation
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