Using the direct method of presenting cash flows

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Reference no: EM13492863

A comparative Statement of Financial Position of Aqua Ltd is presented below:


30 June 2012

30 June 2011


$

$




Cash

218,000

120,000

Trade receivables

204,000

184,000

Inventory

160,000

100,000

Land (at valuation)

62,000

50,000

Plant

520,000

460,000

Accumulated depreciation

(120,000)

(90,000)


1,044,000

824,000




Accounts payable

155,000

150,000

Accrued interest

16,000

12,000

Other accrued liabilities

43,000

45,000

Current tax payable

34,000

30,000

Provision for employee benefits

42,000

38,000

Dividend payable

60,000

-

Borrowings

105,000

95,000

Deferred tax liability

39,000

58,000

Share capital

380,000

350,000

Revaluation reserve

20,000

12,000

Retained earnings

150,000

34,000


1,044,000

824,000

Statement of Profit or Loss and Other Comprehensive Income

for the year ended 30 June 2012


$



Sales

3,580,000

Cost of sales

(2,864,000)

Gross profit

716,000

Gain on sale of plant

16,000

Dividend income

4,000

Distribution costs

(185,000)

Administrative costs

(160,000)

Interest expense

(8,000)

Other costs

(40,000)

Profit before tax

343,000

Income tax expense

(103,000)

Profit for the year

240,000

Other Comprehensive Income


Gain on asset revaluation (net of tax)

8,000

Total comprehensive income

248,000

Additional information:

  • The land revaluation reserve increment for the year is net of deferred tax of $4,000.
  • Plant with a carrying amount of $60,000 (cost $85,000, accumulated depreciation $25,000) was sold for $76,000.
  • Accounts payable at 30 June 2012 include $22,000 in respect of plant acquisitions.
  • There were borrowing repayments of $30,000 during the year.
  • The increase in share capital of $30,000 arose from the company's dividend reinvestment scheme.
  • Dividends declared out of profits for the year were: interim dividend $64,000, final dividend $60,000.

Required:

Using the direct method of presenting cash flows from operating activities, prepare a Statement of Cash Flows in accordance with AASB 107 for the year ended 30 June 2012, including a reconciliation of cash flows arising from operating activities and profit. Show all workings.

Reference no: EM13492863

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