Vittoria Ltd requires a Statement of Cash Flows to be preparedfor the year ended
31 March 2018, the following information has been collected forthis purpose.
Vittoria Ltd Balance Sheets as at 31March |
| 2017 | 2018 |
Cash | $176 000 | $239 000 |
Accounts receivable | 220 000 | 280 000 |
Allowance for doubtful debts | (30 000) | (40 000) |
Inventory | 90 000 | 100 000 |
Plant and equipment | 900 000 | 1 074 000 |
Accumulated depreciation | (80 000) | (100 000) |
Total assets | $1 276 000 | $1 553 000 |
Accounts payable | 80 000 | 70 000 |
Interest payable | 1 000 | 2 000 |
Income tax payable | 76 000 | 88 000 |
Long term loans | 109 000 | 148 000 |
Share capital | 400 000 | 500 000 |
Asset revaluation surplus | - | 30 000 |
Retained earnings | 610 000 | 715 000 |
Total equity and liabilities | $1 276 000 | $1 553 000 |
Vittoria Ltd SCI for the year ended 31 March2018: |
Sales | $885 000 |
Less expenses: | |
COGS | 240 000 |
Depreciation expense | 90 000 |
Interest expense | 6 000 |
Doubtful debts expense | 40 000 |
Salaries and wages expense | 200 000 |
Income tax expense | 84 000 |
Other expenses | 120 000 |
Profit after tax | 105 000 |
OCI: Revaluation gain | 30 000 |
TCI | $135 000 |
Additional information:
Vittoria Ltd classifies interest expense and dividends paid ascash outflows from financing activities.
Plant and equipment, with a fair value of $100 000, has beenacquired by the issue of
$100 000 worth of fully paid Vittoria Ltd shares to the sellersof the plant and equipment.
During the year, equipment that originally cost $100 000 wassold for $30 000 cash.
Plant and equipment was revalued upwards by $30 000.
A long-term loan of $30 000 was specifically organised for thepurchase of plant and equipment costing $30 000.
Required:
(iii) Prepare a statement of cash flows for Vittoria Ltd, forthe year ended 31 March 2018, in accordance with NZ IAS 7Statement of Cash Flows. Vittoria Ltd uses thedirectmethod for the cash flows from operatingactivities (CFOA) section. Complete the necessary reconciliation,as required by NZ FRS-44, to be included in the notes.
(iii) Vittoria LtdStatement of Cash Flows for the year ended 31 March2018 |
Cash flows from operatingactivities: | $ |
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Cash generated fromoperations | |
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Net cash (used in)/from operating activities | |
Cash flows from investingactivities | |
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Net cash (used in)/from investing activities | |
Cash flows from financingactivities | |
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Net cash (used in)/from financing activities | |
Net increase/(decrease) in cash and cashequivalents | |
Cash and cash equivalents at beginning of period | |
Cash and cash equivalents at end ofperiod | |
Reconciliation of net cash from operating activities toprofit: |
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Transactions of a non-cash basis: | |
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Deferrals or accruals of past or future operating cashreceipts or payments: | |
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Items of income/expense included in profit and classified asCFIA/CFFA: | |
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CFOA = cash flows from operating activities, CFIA = cash flowsfrom investing activities and CFFA = cash flows from financingactivities.
