The balance sheet and income statement for Bingle Ltd is presented to you as follows:
Balance Sheet Extract as at 30 June 2012 with comparatives
|
|
30 June 2011
$
|
30 June 2012
$
|
|
Current Assets
|
|
|
|
Cash
|
88 000
|
121 500
|
|
Accounts Receivable
|
110 000
|
140 000
|
|
Provision for Doubtful Debts
|
-15 000
|
-20 000
|
|
Inventory
|
45 000
|
50 000
|
|
|
228 000
|
291 500
|
|
Non Current Assets
|
|
|
|
Land
|
50 000
|
125 000
|
|
Buildings
|
200 000
|
200 000
|
|
Accumulated Depn - Buildings
|
-20 000
|
-30 000
|
|
Plant and Equipment
|
200 000
|
210 000
|
|
Accumulated Depn - Plant and Equip
|
-20 000
|
-20 000
|
|
|
410 000
|
485 000
|
|
TOTAL ASSETS
|
638 000
|
776 500
|
|
|
|
|
|
Current Liabilities
|
|
|
|
Trade Creditors
|
37 000
|
30 000
|
|
Electricity Payable
|
3 000
|
5 000
|
|
Wages Payable
|
5 000
|
10 000
|
|
Income Tax Payable
|
38 000
|
44 000
|
|
|
83 000
|
89 000
|
|
Non Current Liabilities
|
|
|
|
Long Term Loans
|
50 000
|
65 000
|
|
TOTAL LIABILITIES
|
133 000
|
154 000
|
The income statement for the year ending 30 June 2012
|
|
|
$
|
|
Sales (all on credit)
|
|
442 500
|
|
Less Cost of Goods Sold
|
|
120 000
|
|
Gross Profit
|
|
322 500
|
|
Less Expenses Incurred
|
|
|
|
Wages
|
135 000
|
|
|
Interest
|
5 500
|
|
|
Electricity
|
22 500
|
|
|
Doubtful Debts
|
20 000
|
|
|
Depreciation Buildings
|
10 000
|
|
|
Depreciation - Plant and Equip
|
35 000
|
228 000
|
|
Operating Profit before Tax
|
|
94 500
|
|
Less Taxation Expense
|
|
42 000
|
|
Operating Profit after tax
|
|
52 500
|
Required
(i) Reconstructing all relevant ledger accounts, prepare the operating cash flows section of the cash flow statement to determine operating cash flows for the year ending 30 June 2012. Show each individual cash flow item separately.
(ii) Prepare a reconciliation of operating profit (after tax) to cash received from operating activities for the year ending 30 June 2012.