Question

A summarised comparative statement of financial position of Kangaroo Ltd is presented below.

	30-Jun-20	30-Jun-19
Cash	$80,000	$60,000
Accounts Receivable	$65,000	$90,000
Inventories	$58,000	$62,000
Prepayments	$10,000	$12,000
Land	$90,000	$90,000
Plant	$380,000	$300,000
Accumulated Depreciation	($70,000)	($57,000)
	$621,000	$557,000
Accounts Payable	$45,000	$52,000
Long-term Borrowings	$170,000	$200,000
Share Capital	$280,000	$230,000
Retained Earnings	$126,000	$75,000
	$621,000	$557,000

Additional information

• There were no disposals of land or plant during the year.
• A $30 ,000 borrowing was settled through the issue of ordinary shares. There were no other repayments of borrowings.
• Profit for the year was $120 ,000, interest expense was $24,000, and income tax paid was $20,000. There were no items of other comprehensive income.
• A $49,000 dividend was paid during the year.
• Sales revenue for the year was $600 ,000. There was no other revenue.

Required

Prepare the operating activities section of the statement of cash flows using the indirect method of presentation for the year ended 30 June 2020.

Answer 1

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