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

Assignmentxyz corporation published the following financial

Assignment XYZ Corporation published the following financial statements at the end of the year: Assume the following: All discretionary accounts that are influenced by the policy decisions are identified by ** in the abo ...

Accounting and regulatory environmenti need someone to

Accounting and Regulatory Environment. I need someone to write a paper for me on accounting and the regulatory environment. The instructions are below on what it is to include. In the wake of the accounting and finance s ...

Question 1 this problem continues the haupt consulting

Question 1: This problem continues the Haupt Consulting situation from Problem 2-64 of Chapter 2. Start from the trial balance and the posted T-accounts that Haupt Consulting prepared at December 18, as follows: HAUPT CO ...

Accounting assignmentbullemployee theft is a major problem

Accounting Assignment • Employee theft is a major problem in the U.S. retail industry. Information obtained from SecurityInfoWatch reported that twenty three (23) major retailers alone apprehended over 1.1 million shopli ...

What was the most eye opening information you learned about

What was the most "eye opening" information you learned about droughts? Why did you find it so interesting? Using the supply-and-demand model, explain what would happen to the supply curve during a drought. Also explain ...

1 regarding the ottoman territories during the period

1. Regarding the Ottoman territories during the period immediately following World War I, which of the following statements is false? A. Defying Allied pressure, the Turkish sultan supported Kemal. B. In 1921, Greek forc ...

Prospective analysis forecastingquestion 1glaxosmithkline

Prospective Analysis: Forecasting Question 1. GlaxoSmithKline is one of the largest pharmaceutical firms in the world, and over an extended period of time in the recent past, it consistently earned higher ROEs than the p ...

Mcreath corporation is a leading producer of fresh frozen

McReath Corporation is a leading producer of fresh, frozen, and made from concentrate citrus drinks. The firm was founded in 1922 by Charles McReath, an army veteran who settled in Jacksonville, Florida, after World War ...

1 identify which of the following statements is truea a

1. Identify which of the following statements is true. A. A partnership exists as long as there are at least two individuals or entities engaged in the active conduct of a trade or business or a financial operation, and ...

Key information for the plant city divisionkey information

Key Information For The Plant City Division Key information for the Plant City Division (PCD) of Barkley Industries for 2015 are as follows: Revenues $15,000,000 Operating Income 1,800,000 Total Assets 10,000,000 PCD man ...

  • 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

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

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen