Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Trinkets Ltd manufactures and markets souvenirs for tourists. As part of its normal operations Trinkets routinely uses the surplus funds from its souvenir business to add to its investment portfolio. As the accountant for Trinkets Ltd, you have been presented with the following cash flow statement prepared by a work experience student. Some debate has arisen as to the amount of cash on hand at the beginning and end of the period. Trinkets bosses believe the balances to be as follows:

• Cash on hand at 1 April 2011 $402,000
• Cash on hand at 31 March 2012 ($357,000)

Trinkets Ltd have asked that you determine whether the balances are correct as determined by them or those find outd by the student.

Trinkets Ltd

Cash Flow Statement for the year ended 31st March 2012

Cash Inflows:

Receipts from customers 1 400 000
Depreciation expense 185 000
Dividends received 15 000
Interest received 28 000
Proceeds from sale of shares 130 000
Issue of shares for cash 200 000
Issue of shares in exchange for shares in subsidiary 450 000
Cash from term deposit 400 000
Issue of debentures for cash 425 000
Total cash inflows 3 233 000

Cash outflows:

Expenses:

Wages475 000
Raw materials300 000
Interest22 000
All other production and operating expenses 290 000
Income Tax paid 135 000
Total payment for purchase of shares 591 000
Purchase of plant and equipment 1 024 000
Dividends paid 120 000
Investment in Term deposits (on call) 275 000
Total cash outflows 3 232 000
Net change in cash on hand 1 000
Cash on hand at beginning of the year 2 000
Cash on hand at end of the year 3 000

Required:

Prepare a properly formatted Statement of Cash Flows in accordance with direct method.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M944574

Have any Question? 


Related Questions in Accounting Basics

Ics manufacturing company produces plastic parts for the

ICS Manufacturing Company produces plastic parts for the automotive industry. Here is their Income Statement for 2015 - ICS Manufacturing Company Income Statement for 2015 Sales Revenue $35,500,000 Cost of Goods Sold 12, ...

Company name bhp billiton - report 2000-2200

Company Name BHP Billiton - Report (2000-2200) words Introduction Approach of research study What they have done wrong which results in the crisis Issues in sustainability report Issues in what they claim of doing but th ...

Why does it matter whether social security is considered a

Why does it matter whether Social Security is considered a pension plan or an entitlement program? How does the FASAB direct that Social Security be reported? What unique issues does the federal government face in calcul ...

Dq1respond to the ethics discussion case at the end of

DQ1 Respond to the Ethics Discussion Case at the end of chapter 13 in the textbook. Assume that you are a CPA and a tax specialist. Your clients include Ale and Grains, Inc., an S corporation, and Gustav and Heidi Lager, ...

Question 1 which of the following results in an increase in

Question 1. Which of the following results in an increase in the equity in investee income account when applying the equity method? Unrealized gain on intercompany inventory transfers for the prior year Amortizations of ...

Transfer pricing is the pricing of assets funds services

Transfer pricing is the pricing of assets, funds, services, etc., transferred among related organizations. Using online library resources, and the Internet, conduct research to discuss the transfer pricing regulations an ...

1 which of the following would definitely improve both

1. Which of the following would definitely improve both gross profit as reported in the Income Statement and gross profit margin (assuming cost price per unit stays the same)? A. Selling more units at a higher selling pr ...

Assignmentpaper 1excel spreadsheet and 1-2 pagesconsider

Assignment Paper #1 Excel Spreadsheet and 1-2 pages Consider the following scenario: Andre has asked you to evaluate his business, Andre's Hair Styling. Andre has five barbers working for him. (Andre is not one of them.) ...

Business assignmentthe comany i have choosen is upsresearch

Business Assignment The comany i have choosen is UPS. Research a company that interests you from the Fortune 500. (A list will be provided). Analyze what they do. What business are they in? What industry? How have they b ...

Financial paperso the idea is to have the same lenght

Financial Paper So the idea is to have the same lenght, quality and structure. The only thing missing on this paper is a conclusion, that will have to be at least half a page. The company to be compare on the paper will ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro