Solution-Prepare a reconciliation note for disclosure of

Prepare a reconciliation note for disclosure of cash flow

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Reference no: EM133075558

Question - Selected financial statements of the Lodh Ltd are shown below:

Lodh Ltd Statement of Financial position As at 30 June 2020
	2020	2019
Assets	$	$
Cash at Bank	20,000	-
Account Receivable	32,000	28,000
Inventories	110,000	93,000
Land	42,000	83,000
Buildings	120,000	120,500
Accumulated Depreciation - buildings	(10,000)	(6,000)
Equipment	72,000	60,000
Accumulated depreciation - equipment	(30,000)	(18,000)
Total Assets	$356,000	$360,500
Liabilities
Accounts Payable	50,000	$360,500
Bank Overdraft	-	20,000
Equity
Share Capital	216,000	200,000
Retained Earnings	90,000	92,000
Total liabilities and Equity	$356,000	$360,500

Lodh Ltd Statement of Profit or Loss and other comprehensive Income For the year ended 30 June 2020
		2020
Income	$	$
Sales revenue		435,500
Less: Expenses
Cost of sales	283,000
Employee Expenses	98,000
Interest Expenses	5,000
Loss on the sale of land	6,250
Depreciation Expenses - buildings	4,000
Depreciation Expenses - equipment	12,000	408,250
Profit for the year		$27,250

Additional information

(a) During the year ended 30 June 2020, cash dividends were paid to shareholders.

(b) Building extensions were paid for during the year, and a block of land, costing $37,500 was sold for $31,250 cash.

Required - Prepare a reconciliation note for disclosure of cash flow from operating activities with profit.

Reference no: EM133075558

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Prepare a reconciliation note for disclosure of cash flow

Reference no: EM133075558

Reference no: EM133075558

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