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Construct a Statement of Cash Flows using the Direct Method

As at 31 March: 2019 2020 Cash $76 000 220 000 30 000 90 000 900 000 80 000 80 000 1 000 Accounts receivable Less Allowance for doubtful debts Inventory Plant and equipment Less Accumulated depreciation Accounts payable Bank overdraft Interest payable GST payable Operating expenses payable Dividends payable Share capital Retained earnings Asset revaluation surplus $39 000 280 000 40 000 117 600 1 104 000 100 000 70 000 20 000 200 15 000 47 800 17 600 520 000 680 000 30 000 10 000 15 000 500 000 570 000 2020 $873 000 12 000 For the year ended 31 March: Sales - credit Sales - cash Less expenses: COGS Depreciation expense Doubtful debts expense Interest expense Operating expenses Loss on sale of equipment Repairs and maintenance expense 240 000 90 000 40 000 900 220 000 4 000 3 000 Income tax expense 77 000 2020 $873 000 12 000 For the year ended 31 March: Sales - credit Sales - cash Less expenses: COGS Depreciation expense Doubtful debts expense Interest expense Operating expenses Loss on sale of equipment Repairs and maintenance expense Income tax expense Profit after tax Revaluation gain Total Comprehensive Income 240 000 90 000 40 000 900 220 000 4 000 3 000 77 000 207 100 30 000 $237 100 Additional information: (i) During the year ended 31 March 2020 equipment, that originally cost $100 000, was sold. (ii) Rona Ltd uses the direct method for presenting cash flows from operating activities. (iii) Classify any dividends paid as a cash flow from financing activities. (iv) Some items of plant and equipment were revalued, for the first time, during the current financial year. (v) Classify any interest paid as a cash flow from operating activities. (vi) Rona Ltd requires this Statement of Cash Flows to be prepared urgently so it has provided you with the general ledger accounts on pages three to six

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