Please do not give solution in image format thanku PSA11.10 Prepare a statement of cash flows, including asset revaluations, transfer toreserves, and purchase of assets by issuing debt, using the direct method. [LO3]The statement of financial position and statement of profit or loss for DVDs and More Limitedis presented as follows.ASSETSCurrent assetsCashAccounts receivableAllowance for doubtful debtsInventoryPrepaid rentTotal current assetsNon-current assetsLandBuildingsAccumulated depreciation-buildingsEquipmentAccumulated depreciation-equipmentPatentsTotal non-current assetsTotal assetsLIABILITIES AND EQUITYCurrent liabilitiesAccounts payableAccrued expensesIncome tax payableFinal dividend payableTotal current liabilitiesNon-current liabilitiesBorrowingsTotal liabilitiesEquityShare capitalRevaluation surplusGeneral reserveRetained earningsTotal equityTotal liabilities and equityDVDS AND MORE LIMITEDStatement of financial positionas at 30 June 20192019$'000165190(20)20020555420510(230)250(110)3087013851708092503923107024001084513068313852018$'00080210(12)17060508360470(210)280(90)40850131819075454035041076035048351255581318 Sales revenueProfit on sale of landLess: ExpensesCost of salesRent expenseBad debts expenseDepreciation and amortisationOther expensesLoss on sale of office equipmentProfit before income taxIncome tax expenseCurrent yearUnder-provision from previous yearProfit for the periodDVDS AND MORE LIMITEDStatement of profit or lossfor the year ended 30 June 2019$'000RequiredPrepare a statement of cash flows using the direct method.240401290282018-$'00062020640430210110100Additional information (dollar amounts expressed in full units):1. Equipment with an original cost of $90 000 and accumulated depreciation of $40 000was sold.2. Land with a cost of $80 000 was sold for $100 000. The remaining land was revaluedupwards by $60 000.3. Equipment to the value of $20 000 and buildings to the value of $40 000 wereacquired with the issue of a long-term note. The amount payable has been included inborrowings on the statement of financial position.

Name: Please do not give solution in image format thanku PSA11.10 Prepare a
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Description: Please do not give solution in image format thanku PSA11.10 Prepare a statement of cash flows, including asset revaluations, transfer toreserves, and purchase of assets by issuing debt, using the direct method. [LO3]The statement of financial positio

The direct cash flow method uses real Cash inflows and outflows taken directly from company…

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Additional information (dollar amounts expressed in full units): 1. Equipment with an original cost of $90 000 and accumulated depreciation of $40 000 was sold. 2. Land with a cost of $80 000 was sold for $100 000. The remaining land was revalued upwards by $60 000. 3. Equipment to the value of $20 000 and buildings to the value of $40 000 were acquired with the issue of a long-term note. The amount payable has been included in borrowings on the statement of financial position. Required Prepare a statement of cash flows using the direct method.

Additional information (dollar amounts expressed in full units): 1. Equipment with an original cost of $90 000 and accumulated depreciation of $40 000 was sold. 2. Land with a cost of $80 000 was sold for $100 000. The remaining land was revalued upwards by $60 000. 3. Equipment to the value of $20 000 and buildings to the value of $40 000 were acquired with the issue of a long-term note. The amount payable has been included in borrowings on the statement of financial position. Required Prepare a statement of cash flows using the direct method.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter16: Statement Of Cash Flows

Section: Chapter Questions

Problem 11Q: Note payments reduce cash and are related to long-term debt. Do these facts automatically lead to...

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