Inventory 420 000 460 000 Accounts Receivable 390 000 320 000 Interest Receivable
he financial statements of Hollywood Estate are given below.
Comparative
|
|
30 September 2021 |
30 September 2020 |
|
Assets |
$ |
$ |
|
Current Assets |
|
|
|
Inventory |
420 000 |
460 000 |
|
Accounts Receivable |
390 000 |
320 000 |
|
Interest Receivable |
4 000 |
9 000 |
|
Investments (Held for trading) |
50 000 |
0 |
|
Cash in bank |
75 000 |
0 |
|
Cash in hand |
7 000 |
5 000 |
|
Total Current Assets |
946 000 |
794 000 |
|
|
|
|
|
Non-Current Assets |
|
|
|
Property, Plant and Equipment (net) |
584 000 |
510 000 |
|
TOTAL ASSETS |
1 530 000 |
1 304 000 |
|
|
|
|
|
Liabilities and Shareholders’ Equity |
|
|
|
Current Liabilities |
|
|
|
Bank overdraft |
0 |
70 000 |
|
Accounts Payable |
550 000 |
400 000 |
|
Interest Payable |
6 000 |
33 000 |
|
Income Tax Payable |
100 000 |
90 000 |
|
Other Payables |
30 000 |
0 |
|
Total Current Liabilities |
686 000 |
593 000 |
|
|
|
|
|
Non-Current Liabilities |
|
|
|
10% Note |
0 |
40 000 |
|
5% Note |
329 000 |
349 000 |
|
Total Non-Current Liabilities |
329 000 |
389 000 |
|
TOTAL LIABILITIES |
1 015 000 |
982 000 |
|
|
|
|
|
Shareholders’ Equity |
|
|
|
Ordinary Share Capital ($1.00 par) |
452 000 |
392 000 |
|
Retained Earnings |
63 000 |
(70 000) |
|
Total Shareholders’ Equity |
515 000 |
322 000 |
|
Total Liabilities and Shareholders’ Equity |
1 530 000 |
1 304 000 |
Statement of Profit or Loss for year ending 30 September 2021
|
|
$ |
$ |
|
Sales Revenue |
|
2 900 000 |
|
Cost of Sales |
|
(1 734 000) |
|
Gross Profit |
|
1 166 000 |
|
Operating Expenses: |
|
|
|
Administrative expenses |
342 000 |
|
|
Distribution costs |
520 000 |
(862 000) |
|
Income from operations |
|
304 000 |
|
|
|
|
|
Other Revenues and Expenses |
|
|
|
Interest Income from Investments |
5 000 |
|
|
Interest expense |
(19 000) |
|
|
|
|
(14 000) |
|
Income from continuing operations before income taxes |
|
290 000 |
|
Income tax expense |
|
(104 000) |
|
Net Income |
|
186 000 |
Additional information:
(1) On 1 October 2020, Hollywood Estate issued additional shares at par.
(2) Property, plant and equipment disposed in the year had a carrying amount of $75 000; cash received on disposal was $98 000.
(3)
(4) An interim dividend of $53 000 was paid during the year.
Required:
Complete the schedule provided to prepare a Statement of Cash Flows for the year ending 30 September 2021 using the Direct Method for Hollywood Estate.
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