Question

An extract from the balance sheets of Mum & Dra Pty Ltd showed the following for the years ended 30 June 2013 and 30 June 2014:

Current Assets	30 June 2013	30 June 2014
Bank Accounts receivable Allowance (provision) for doubtful debts Inventory Bills Receivable	17,000 67,000 - 3,000 52,000 10,000	19,300 61,000 - 2,000 55,000 14,000
Current Liabilities
Accounts payable Taxation payable Provision for annual leave Provision for dividend	44,000 12,000 14,000 16,000	48,000 14,000 22,000 22,000

Additional Information:

Net profit after taxation is $244,000. This profit was determined after accounting for the following income and expense items:

	$
Depreciation	36,000
Gain on sale of plant	18,000
Transfer from the allowance (provision) for doubtful debts	1,000
Transfer to provision for annual leave	8,000

Required: Determine the net cash provided from operating activities for the year ended 30 June 2014, by completing the reconciliation with profit after tax

Please use the following format

Reconciliation of profit after tax to cash flows from operating activities

Profit after tax
Add (subtract) non cash items
Add (subtract) movements in balance sheet
Net cash from Operating Activities

Answer 1

Reconciliation of profit after tax to cash flows from operating activities
Profit after tax		$244,000
Add (subtract) non cash items
Depreciation expenses	$36,000
(Gain) on sale of plant	-18000
Add (subtract) movements in balance sheet
Decraese in Accounts receivable (67000-3000)-(61000-2000)	$5,000
(Increase) In Inventory	-3000
(Increase) In Bill receivable	-14000
Increase in Accounts payable	4000
Increase in Taxation payable	2000
Increase in provison for Annual leave	8000	$20,000
Net cash from Operating Activities		$264,000
If any doubt please comment