Stuck on a problem and psyching myself out with different answers. Please show a
ID: 2328427 • Letter: S
Question
Stuck on a problem and psyching myself out with different answers.
Please show any workings.
Pharmacy Adelaide Ltd Comparative Statements of Financial Position as at 30 June 2019 ASSETS 2019 Cash at Bank Accounts Receivable Consultation Service Receivable Inventory Prepaid Insurance Land Property, Plant and Equipment Accumulate Depreciation PP&E $ 33,400 37,000 1,000 102,650 9,500 107,000 205,000 (40,000) 61,060 2,000 121,900 6,500 84,500 310,000 (46,500) LIABILITIES AND EQUITY Accounts Payable Interest Payable Income Tax Payable Other Expenses Payable Debentures Payable Share Capital Retained Earnings $ 48,280 62,700 12,500 2,000 15,000 275,000 135,600 61,660 S455,550 564460 18,800 1,000 13,500 246,870 78,100 49,000Explanation / Answer
Answers
DIRECT METHOD
Working no. [provided after the statement]
Cash Flow Statement
Cash Flows from Operating Activities
1
Cash received from accounts receivables
$ 172,940.00
2
Cash from Consultation Service Receivables
$ 19,500.00
4
Cash paid to Accounts Payable
$ (104,290.00)
5
Interest Expense paid in Cash
$ (9,240.00)
6
Cash paid for Income Tax
$ (6,270.00)
7
Cash paid for expenses (excl Insurance)
$ (10,170.00)
Net Cash from Operating Activities
$ 62,470.00
Cash Flows from Financing Activities
[Point 1 in question]
Purchase of Equipment
$ (141,000.00)
9
Depreciation expense
$ 12,000.00
10
Cash received from sale of Land
$ 22,500.00
Net Cash flow from Investing Activities
$ (106,500.00)
Cash flows from Financing activities
11
Cash received from Debentures
$ 28,130.00
11
Cash received from Share capital
$ 57,500.00
8
Cash paid for Dividends
$ (50,000.00)
Net Cash flow from Financing activities
$ 35,630.00
Increase (Decrease) in Cash
$ (8,400.00)
Cash balance at the beginning
$ 33,400.00
Cash balance at the end
$ 25,000.00
All The Related Working
Working #1
Cash received from Accounts receivables
A
Beginning Bal (2018)
$ 37,000.00
B
Sales
$ 197,000.00
C
Ending Bal (2019)
$ 61,060.00
D = A + B - C
Cash received from accounts receivables
$ 172,940.00
Working #2
Cash from Consultation Service Receivables
A
Beginning Bal (2018)
$ 1,000.00
B
Receivables in Income Statement
$ 20,500.00
C
Ending Bal (2019)
$ 2,000.00
D = A + B - C
Cash from Consultation Service Receivables
$ 19,500.00
Working #3
Inventory Purchased on credit
A
Beginning Bal (2018)
$ 102,650.00
B
Cost of Sales
$ 99,460.00
C
Ending Bal (2019)
$ 121,900.00
D = B + C - A
Inventory Purchased on credit
$ 118,710.00
Working #4
Cash paid to Accounts Payable
A
Beginning Bal (2018)
$ 48,280.00
B
Inventory Purchased on credit
$ 118,710.00
C
Ending Bal (2019)
$ 62,700.00
D = A + B - C
Cash paid to Accounts Payable
$ 104,290.00
Working #5
Interest Expense paid in Cash
A
Beginning Bal Interest payable(2018)
$ 18,800.00
B
Interest expenses in Income Statement
$ 2,940.00
C
Ending Bal (2019)
$ 12,500.00
D = A + B - C
Interest Expense paid in Cash
$ 9,240.00
Working #6
Cash paid for Income Tax
A
Beginning Bal Income tax payable (2018)
$ 1,000.00
B
Incoem Tax expense
$ 7,270.00
C
Ending Bal (2019)
$ 2,000.00
D = A + B - C
Cash paid for Income Tax
$ 6,270.00
Working #7
Cash paid for other expenses
A
Beginning Bal Other expense payable (2018)
$ 13,500.00
B
Other operating expense (excl. Depreciation)
$ 14,670.00
C
Ending Bal (2019)
$ 15,000.00
D = A + B - C
Cash paid for expenses (excl Insurance)
$ 13,170.00
E
Prepaid Insurance Beg Bal
$ 9,500.00
F
Prepaid Insurance End Bal
$ 6,500.00
G = D - E + F
Cash paid for other expenses
$ 10,170.00
Working #8
Cash paid for Dividends
A
Retained earnings beg bal
$ 49,000.00
B
Net Income
$ 62,660.00
C
Ending Bal (2019)
$ 61,660.00
D = A + B - C
Cash paid for Dividends
$ 50,000.00
Working #9
Cash received from sale of Equipment
A
Cost of Equipment sold
$ 36,000.00
B
Change in Accumulated Depreciation balance
$ 6,500.00
C
Depreciation expense
$ 35,500.00
D = C - B
Depreciation on Equipment Sold
$ 29,000.00
E = A - D
Book value of Equipment sold
$ 7,000.00
F
Gain on Sale (as per Income Statement)
$ 5,000.00
G = E + F
Cash received from sale of Equipment
$ 12,000.00
Working #10
Cash received from sale of Land
A
Beginning Bal - Land
$ 107,000.00
B
End Bal
$ 84,500.00
C = A+B
Cash received from sale of Land
$ 22,500.00
Working #11
Cash received from Debenture and Share Capital issue
From Debenture
From Share Capital
A
Ending Balance (2019)
$ 275,000.00
$ 135,600.00
B
Beginning bal
$ 246,870.00
$ 78,100.00
C = A - B
Cash received from Debenture and Share Capital issue
$ 28,130.00
$ 57,500.00
Working no. [provided after the statement]
Cash Flow Statement
Cash Flows from Operating Activities
1
Cash received from accounts receivables
$ 172,940.00
2
Cash from Consultation Service Receivables
$ 19,500.00
4
Cash paid to Accounts Payable
$ (104,290.00)
5
Interest Expense paid in Cash
$ (9,240.00)
6
Cash paid for Income Tax
$ (6,270.00)
7
Cash paid for expenses (excl Insurance)
$ (10,170.00)
Net Cash from Operating Activities
$ 62,470.00
Cash Flows from Financing Activities
[Point 1 in question]
Purchase of Equipment
$ (141,000.00)
9
Depreciation expense
$ 12,000.00
10
Cash received from sale of Land
$ 22,500.00
Net Cash flow from Investing Activities
$ (106,500.00)
Cash flows from Financing activities
11
Cash received from Debentures
$ 28,130.00
11
Cash received from Share capital
$ 57,500.00
8
Cash paid for Dividends
$ (50,000.00)
Net Cash flow from Financing activities
$ 35,630.00
Increase (Decrease) in Cash
$ (8,400.00)
Cash balance at the beginning
$ 33,400.00
Cash balance at the end
$ 25,000.00