Required: Calculate the following: Cash spent on plant and equipment Proceeds from sale of equipment Cash paid for insurance
Following information relate to Hawke Ltd for the financial year ended 2020 Hawke Ltd
As at 30 June 2020
|
2020 |
2019 |
Assets |
|
|
Cash at bank |
84200 |
100000 |
|
208000 |
172000 |
Inventory |
200000 |
208000 |
Prepaid insurance |
12000 |
20000 |
Interest receivable |
400 |
600 |
Investments |
80000 |
40000 |
Plant and equipment |
800000 |
720000 |
Less: Accumulated |
-200000 |
-180000 |
Total assets |
1184600 |
1080600 |
Liabilities |
|
|
Accounts payable |
152000 |
128000 |
Provision for employee benefits |
24000 |
16000 |
Other expenses payable |
8000 |
12000 |
Equity |
|
|
Share capital |
800000 |
800000 |
|
200600 |
124600 |
Total liabilities and equity |
1184600 |
1080600 |
Hawke Ltd
Statement of Financial performance
For the period ended 30 June 2020
|
2020 |
|
Income |
|
|
Sales revenue |
$1,920,000 |
|
Interest revenue on investments |
$4,000 |
$1,924,000 |
Less: Expenses |
|
|
Cost of sales |
$1,344,000 |
|
Employee expenses |
$260,000 |
|
Insurance expense |
$32,000 |
|
Loss on sale of equipment |
$8,000 |
|
Depreciation expense – plant and equipment |
$80,000 |
|
Other expenses |
$44,000 |
$1,768,000 |
Profit for the year |
|
$156,000 |
Additional information
The loss on sale of equipment relates to an item that originally cost $80 000 and had a carrying amount of $20000 when sold.
Required: Calculate the following:
- Cash spent on plant and equipment
- Proceeds from sale of equipment
-
Cash paid for insurance
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