QUESTION 4: Cash Flow Statement (cont.)RETRO LOUNGECash Flow Statementfor the year ended 30 June 2020Cash Flows from Operating ActivitiesReceipts from CustomersPayments to Suppliers & EmployeesCash generated from operationsInterest PaidIncome Tax PaidInterest ReceivedCashflows from Operating ActivitiesCashflows from Investing ActivitiesPurchase of EquipmentProceeds from Sale of LandCashflows from Investing ActivitiesCashflows from Financing ActivitiesDrawingsNet Increase (decrease) in cash heldCash at startCash at end QUESTION 4: Cash Flow StatementlThelma Binkley is the sole proprietor of the Retro Lounge' a business that sells retro bananalounges. Thelma is a good friend of both Ms Blake and Mr Jones and they frequently refer clients togach others business. They have been so impressed with the quality of accounting work done forthem by Michell & Co Accounting Specialists Pty Ltd and in particular with your work, that they havesuggested that Thelma come to see you for assistance in preparing the Cashflow Statement for the"Retro Lounge'.RETRO LO UNGECOMPARATIVE BALANCE SHEETSAS AT JUNE 3020202019Current Assets$1 9503 0096 500Cash on Hand$8 898Cash at BankAccounts Receivable (net)33 200Inventory28 00016 000Prepaid Expenses1 650$71 748700$28 159Non Current AssetsPlant & Equipment83 50064 00060 50080 00046 400180 000less Acc. Depreciation(23 000)(17 600)LandTotal Assets212 248254 559Current LiabilitiesBank Overdraft6 402Accounts Payable3 4982 800Expenses Payable780790Таx Payable13 79024 4701 2004 790Non Current LiabilitiesBank Loan20 00020 000Total Liabilities44 47024 790$167 778$229 769Net AssetsEquity167 778$167 778229 769$229 769CapitalQUESTION 4: Cash Flow Statement (cont.)RETRO LO UNGEINCOME STATEMENTFOR THE YEAR ENDED 30th JUNE 2020Net Sales$148 S00Cost of Sales45 200Discount Received280Gross Profit:103 580Other Revenue:Interest Revenue8383123 644Expenses:Selling & Admin Expense18 847Doubtful Debts Expense354Depreciation Expense5 400Interest Expense3 80028 401Profit before tax75 26216 278$58 984Income tax expenseProfitAdditional InformationThe Land was sold for $100,000 cash.ANSWER THIS QUESTION ON THE PRO FORMA PROVIDEDREQUIRED:Prepare a Statement of Cash Flows in the pro forma provided below and show all calculations (ananswer without supporting calculations will receive zero marks).a.

Cash flow statement: Cash flow statement is financial statement which summarizes the amount of…

Answered: REQUIRED: Prepare a Statement of Cash…

REQUIRED: Prepare a Statement of Cash Flows in the pro forma provided below and show all calculations (an answer without sup portin e calculations will re ceive z ero marks). a.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter6: Statement Of Cash Flows

Section: Chapter Questions

Problem 32P

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