Question

Kim Khan Comparative statements of financial position as at 30 June 2019 2020 Current assets Cash $420 Accounts receivable 4,140 4,210 Inventory 5,500 6,100 Prepaid insurance 300 370 Non-current assets Equipment 18,500 24,900 Accumulated depreciation - equipment (5,700) (7,000) Land 20,000 23,450 Motor vehicles 14,650 15,650 Accumulated depreciation - motor vehicles (5,730) (6,560) Total assets 51,660 61,540 Current liabilities Bank overdraft 300 Accounts payable 6,150 8,050 Non-current liabilities Long-term mortgage 14,000 18,900 Total liabilities 20,450 26,950 Net assets $31,210 $34,590 Equity Kim Khan, Capital $31,210 $34,590 Total equity $31,210 $34,590

Answer 1

$ 7,730 KIM KHAN Statement of Cash Flows for the year ended 30 June 2020 Cash flows from operating activities: Cash receipts from customers $ 17,930 Cash paid to suppliers and employees $ (10,200) Net cash flow from operating activities Cash flows from investing activities: Purchase of property, plant and equipment $ (10,850) Net cash used in investing activities Cash flows from financing activities: Proceeds from owner contribution $ 5,500 Proceeds from long-term borrowings $ 4,900 Drawings paid $ (7,160) Net cash from financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year $(10,850) $ 3,240 $ 120 $ 300 $ 420 Working Notes: Cash Receipts from Customers Opening balance of accounts Reeivables Add: Sales $ $ $ $ 4,140 18,000 22,140 4,210 17,930 Less; Closing balance of accounts Reeivables $

Cash paid to suppliers Cost of Sales Add: Closing balance of Inventory Opening balnce of Accounts Payable $ $ $ $ 4,900 6,100 6,150 17,150 5,500 8,050 3,600 $ Less: opening balance of Inventory Closing balance of Accounts Payable $ $ Cash paid to employees Expenses (Including Depreciation) $ 8,660 Less: Depreciation ($7,000-$5,700+6,560-$5,730) $ 2,130 $ 6,530 Add: Ending balance of Prepaid Insurance $ 370 $ 6,900 Less: Beginning balance of Prepaid Insurance $ 300 $ 6,600 Cash paid to Suppliers and employees = $3,600+$6,600 = $10,200 $ $ Purchase of property, plant and equipment Closing balance of Equipmnet Less: Opening balance of Equipment Closing balance of Land Less: Opening balance of Land Cloisng balance Motor vehicles Less: Opening balance of Motor vehicles $ $ 24,900 18,500 $ 6,400 23,450 20,000 $ 3,450 15,650 14,650 $ 1,000 $ 10,850 $ $