Reference no: EM132931085
The following transactions were undertaken by Paradise Juices Limited during the financial year ended 30th June, 2020.
1. Issued 4% debentures for $1,000,000.
2. Sold a used truck for $300,000 with a carrying amount of $100,000.
3. Purchase of land for future expansion of the business for $500,000 cash.
4. Paid off a $400,000 long term loan plus interest of 40,000.
5. Paid a cash dividend of $200,000.
6. Purchased a new truck paying $60,000 cash and signing a loan for $120,000.
7. Purchased shares in Tropical Juice Limited to be held as long term investment for $220,000 cash.
8. Issued ordinary shares for cash $4,000,000.
9. Purchased shares in Salty Juice Limited to be held as an investment for $600,000 cash.
10. Sold a long term government bond with a carrying amount of $200,000 for $250,000 including accrued interest of $20,000.
REQUIRED:
Question 1: Explain by preparing a correctly classified cash flow statement of Paradise Juices Limited for the year ended 30th June, 2020.