60.1K

Verified Solution

Link Copied!

using direct method please.

In Class Exercise on Cash Flow statement Comparative information of Mango Pie Ltd. on 30 June 2012 and 30 June 2013 is provided below. Mango Pie Ltd Statement of Financial Position as at 30 June 2012 and 2013 2012 2013 Cash at bank 5 62 000 $ 43 000 Accounts Receivable 76 000 84 500 Inventory 124 000 113 500 Land 62 500 25 000 Buildings 137 500 265 000 Accumulated Depreciation - buildings (85000) (100 000) Plant and Equipment 40 000 40 000 Accumulated depreciation - Plant and Equipment (5000) (10 000) Total Assets $ 412 000 S 461 000 Accounts Payable Interest Payable Other accrued expenses Long term (mortgage) loan payable Equity (share) Capital Retained Earnings Total Liabilities and Equity 5 60 500 750 8 750 45 000 125 000 172 000 $412000 $ 67 000 250 3000 66 250 125 000 199 500 $ 461 000 Supplementary information: i. Sales for the year ended 30 June 2013 was 5443 500 and the Cost of Sales was $283 000, yielding a gross profit of $160 500. Net Profit for the year ended 2013 was $31 250, after subtracting expenses of $129 250 from the gross profit figure. The expenses for the year included depreciation on buildings and plant and equipment, a loss on sale of land, and $5000 in interest expense. iii. Inventory purchases for 2013 were $272 500. IV. All sales and purchases of inventories were on credit. Cash dividends were paid during the year ended 30 June 2013. vi. A block of land, costing $37 500, was sold for 531 250 for cash Building extensions were paid for during the year ended 30 June 2013. vii No plant was purchased or sold during the year. V. Required: Prepare a Cash Flow Statement for Mango Pie Ltd for the year ended 30 June 2013, using the direct method. Show necessary calculations

Answer & Explanation Solved by verified expert

See Answer