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McD2060 Trim3 2014 Tutorial 7 Cash Flow Questions Student Handout

Autor:   •  October 1, 2018  •  1,304 Words (6 Pages)  •  652 Views

Page 1 of 6

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In Tutorial 7

Additional Question 1

Sanofi Pharmaceuticals Limited Income Statement for the year ended 31 Dec 2013

$

$

Revenues

Sales Revenue

810,400

COGS

369,600

Gross Profit

440,800

Other Operating Income

Rent Revenue

8,000

Gain on sale of Machinery

4,000

12,000

Expenses

Salary expense

155,600

Insurance expense

40,000

Depreciation expense

16,000

Total expense

211,600

Operating profit before tax

241,200

Taxation expense

69,960

Net profit after tax

171,240

Sanofi Pharmaceuticals Limited Balance Sheets as at 31 Dec

2013

2012

Current assets

Cash

41,600

21,200

Accounts receivable

122,000

110,400

Prepaid Insurance

30,000

20,000

Inventories

334,400

348,800

Non-current assets

Land

276,000

240,000

Machinery

302,680

277,600

Less Acc Depn Machinery

88,680

80,000

Total assets

1,018,000

938,000

Current liabilities

Accounts payable

125,600

115,200

Salary payable

104,800

122,400

Dividend payable

64,800

40,000

Income tax payable

69,160

30,800

Non-current liabilities

Notes payable

300,000

400,000

Shareholders’ equity

Paid up capital

296,400

218,800

Retained profits

57,240

10,800

Total liabilities and shareholder equity

1,018,000

938,000

Additional information

Sanofi Pharmaceuticals Limited sold old machinery for cash that originally cost $15,320 and then purchased new equipment using cash

Required

Prepare a Statement of Cash Flows and a reconciliation of Net profit and cash flow from operating activities for the year ended 31 December 2013

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MCD2060 Trimester 3 2014 Tutorial 7 Cash Flow Student Handout

In Tutorial 7

Additional Question 1

Sanofi Pharmaceuticals Limited

A/cs Receivable

Bal

Bank

Sales

Bal

Inventory

Bal

COGS

A/c Pay

Bal

A/cs Payable

Bank

Bal

Bal

Inv

Prepaid Insurance

Bal

Insur

Bank

Bal

...

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