Prepare the operating activities section of the statement

Reference no: EM132702448

Question - A summarised comparative statement of financial position of Kangaroo Ltd is presented below.

	30-Jun-20	30-Jun-19
Cash	$80,000	$60,000
Accounts Receivable	$65,000	$90,000
Inventories	$58,000	$62,000
Prepayment	$10,000	$12,000
Land	$90,000	$90,000
Plant	$380,000	$300,000
Accumulated Depreciation	($70,000)	($57,000)
	$621,000	$557,000
Accounts Payable	$45,000	$52,000
Long-term Borrowings	$170,000	$200,000
Share Capital	$280,000	$230,000
Retained Earnings	$126,000	$75,000
	$621,000	$557,000

Additional information - There were no disposals of land or plant during the year.

A $30?,000 borrowing was settled through the issue of ordinary shares. There were no other repayments of borrowings.

Profit for the year was $120?,000, interest expense was $24,000, and income tax paid was $20,000. There were no items of other comprehensive income.

A $49,000 dividend was paid during the year.

Sales revenue for the year was $600?,000. There was no other revenue.

Required - Prepare the operating activities section of the statement of cash flows using the indirect method of presentation for the year ended 30 June 2020.

Reference no: EM132702448

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