80.2K

Verified Solution

Link Copied!

Statement of Cash Flows

You are provided the following financial information for Madam Malkins Exquisite Robes, an exclusive fashion manufacturing and retailing company:

Madam Malkins Exquisite Robes Comparative Balance Sheets As at 30th June 2015 2014 $'000's $,000's Current Assets Cash on Hand 48 112 Cash at Bank - 288 Accounts Receivable (net) 240 432 Inventory 368 288 Prepaid Advertising Expense 144 800 48 1168 Non-Current Assets Manufacturing Equipment 5088 4960 less Acc. Depreciation 1120 3968 2400 2560 Investments 672 - . . Total Assets 5440 3728 Current Liabilities Overdraft Accounts Payable 320 288 512 Accrued Rent Expense 48 16 Interest Payable 144 800 320 848 Non-Current Liabilities Loan 2400 800 Total Liabilities 3 200 1648 Net Assets 2240 2080 Equity M. Malkin, Capital 2240 2080

(continued .........)

Madam Malkins Exquisite Robes Income Statement For the year ended 30th June 2015 $'000's Net Sales 11776 Less: COS Gross Profit: 5856 5920 Other Revenue: Gain from Sale of Assets 16 Dividend Revenue 32 Discount Received 64 112 6032 Expenses: Selling & Admin Expense 4864 Discounts Allowed 112 Depreciation Expense 320 Interest Expense 176 5472 Profit 560

Additional Information:

Manufacturing Equipment with an historic cost of $1,760,000 was sold for $176,000 cash and made the company a profit of $16,000.

M. Malkin contributed no additional capital to the business during the year.

REQUIRED:

Answer this question on the pro forma provided below.

Prepare a statement of cash flows for the year ended 30^th June 2015 in accordance with the direct method. Show all calculations on the pro forma provided.

Answer Performa with prefilled fields :

A)

Madam Malkins Exquisite Robes Statement of Cash Flows for the year ended 30 June 2015
Cash flows from operating activities:
Receipts from customers	11 856
Payments to suppliers and employees
Dividends received	32
Interest received
Interest paid	(352)
Net cash from operating activities
Cash flows from investing activities:
Purchase of Equipment
Purchase of Investments
Proceeds from sale of assets
Net cash from investing activities
Cash flows from financing activities:
Loan
Drawings	(400)
Net cash used in financing activities
Net increase/decrease in cash held
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year

*Calculations must be provided below. Failure to provide supporting calculations will result in ZERO marks awarded for this question.

Calculations:

Answer & Explanation Solved by verified expert

See Answer