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.

(c) No plant was purchased or sold during the year.

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

Reference no: EM133075558

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