The ‘statement of financial performance' (‘income statement') for Capital Properties is as follows:
Capital Properties Ltd Statement of financial performance For the year ended 30 June 2011
$ $ Revenues: Sales revenue 237,000 Expenses: Cost of sales 103,000 Salary expense 45,000 Depreciation expense 29,000 Advertising expense 12,000 Interest expense 2,500 Income tax expense 9,000 194,000 ______ Net profit after tax 36,500 Additional information:
• Cash payments for inventory were $87,000, and payments to employees were $1,000 higher than expenses
• Cash payments for interest and tax were the same as the expensed amounts
• Acquisition of non-current assets is $116,000. Of this amount, $102,000 is paid in cash, and $14,000 by the issue of equity
• Proceeds from sale of land total $24,000.
• Cash proceeds from the issue of shares total $30,000
• Payment of long term loan $24,000
BUSS1030 Semester 1, 2012 MOCK EXAM Page 9 of 19
BUSS1030 Semester 1, 2012 MOCK EXAM Page 9 of 19
Select information from the ‘statement of financial position' (‘balance sheet') is as follows:
Capital Properties Ltd Statement of financial position As at 30 June 2011
2011 $ 2010 $ Current assets Cash 79,500 20,000 Accounts receivable 43,000 58,000 Inventory 92,000 92,000 Current liabilities Accounts payable 38,000 22,000 Depreciation expense 29,000 21,000
Required:
Prepare a cash flow statement for Capital Properties Ltd for the year ended 30 June 2011, using the direct method.