Prepare the statement of cash flows

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Reference no: EM133109257

Question - The balances of selected accounts of XYZ Ltd at 30 June 2020 and 30 June 2021 are:


2021 $000

2020 $000

Sales (all on credit)

520

720

Cost of goods sold

280

232

Doubtful debts expense

25

38

Interest expense

17

20

Salaries

88

134

Depreciation

20

32

Gain on sale of plant

4

14

Cash

-

55

Inventory

378

336

Accounts receivable

560

525

Allowance for doubtful debts

56

74

Land

380

380

Plant

240

190

Accumulated depreciation

49

63

Bank overdraft

30

-

Accounts payable

420

380

Accrued interest

4

6

Long-term loan

244

266

Share capital

80

80

Additional information:

Dividends of $36 000 were paid during the year ending 30 June 2021.

Plant with a carrying amount of $6 000 (original cost $40 000 and accumulated depreciation $34 000) was sold during the year ending 30 June 2021 and new plant was acquired.

Required - Prepare the Statement of Cash Flows and all supporting notes for the year ending 30 June 2021.

Reference no: EM133109257

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