Reference no: EM132970552
Rad Ltd sells vinyls and music related merchandise. For the year ended 30 June 2021, Rad Ltd recorded a Profit after tax of $32,000 after deducting from sales of $978,000 the following expenses: cost of sales $565,000, depreciation on buildings $80,000, bad debts $15,000, interest $35,000, discount allowed $3,000, other accrued expenses $200,100, and income tax $47,900.
The following additional information is available from Rad Ltd statement of financial position as at 30 June 2021:
2021 2020
$ $
Accounts Receivable 49,300 37,800
Allowance for doubtful debts (5,000) (3,000)
Inventory 94,200 96,600
Prepaid expenses 19,000 15,000
Deferred tax asset 12,000 14,400
Accounts payable 58,000 45,400
Provision for employee benefits 21,000 18,000
Other accrued expenses 23,500 25,000
Interest payable 40,000 20,000
Current tax liability 13,500 15,000
Deferred tax liability 22,000 20,900
Required:
Calculate and prepare Cash Flows from Operating Activities (an extract from the Statement of Cash Flows) in accordance with AASB107 for the year ended 30 June 2021 Use the direct method.