Question

The income statement and additional data of Eldridge Properties Ltd follow: Eldridge Properties Ltd Statement of Financial Performance for the year ended 30 June 2012 Revenues $229,00 Sales revenue $237,00 Dividend revenue 8,000 Expenses $103,00 Costs of sales Salary expenses Depreciation expense Advertising expense Interest expense Income tax expense Profit 45,000 28,000 12,000 2,000 9,000 199,000 $38,000 Additional data: a. Beginning accounts receivable were $35,000 while closing accounts receivable were $20,000. b. Payments to suppliers are the sum of cost of sales plus advertising expense. c. Payments to employees are $1,000 more than salary expense. d. Dividend revenue, interest expense and income tax expense equal their cash amounts. e. Acquisition of non-current assets for cash in the amount of $101,000. f. Proceeds from sale of land total $24,000. g. Proceeds from issue of ordinary shares total $30,000. h. Payment of long-term bill payable is $15,000. i. Payment of dividends is $11,000. j. Cash balance at 30 June 2011 was $20,000; 30 June 2012 was $27,000. Required 1. Prepare Eldridge Properties' statement of cash flows for the year ended 30 June 2012. Use the direct method. 2. Evaluate Eldridge's cash flows for the year.

Answer 1

Cash from operating flow Statement activities Care flow + & - Receipt from Paymult to Payment to Debtorg Suppliers Employee 2,44,000 101, 15,000 lo 46,000 (49000 e Cash Paymut of Income tax How from operating activity 74,000 Cash flow from Investing activity + - & Dividend Received. Acquisition of Non Current Asset Recipt from sale of land 8000 1,01,000 D + 34,000 |- 69,000 Cash Cash flow used in Investing activily flow from financy actiully + Proceeds from issue of Shares o laynet of long term fill ( Dividend paid. 14 Interest paid. Cash flow from financing activity 1+ 30000 W 15000 - 1100D -2000 2000

обо Net Cash Cash flow increase during the period & Cash Equivoluit at opening 120000 Cash & Cash equivalent of Closing 27000 (2) Eldridge has generated $74000 from operation or businus and $2000 from financing and out of which it has used $69000 in investmut for further growing of busines