Question 16

Latrobe Industries
Income Statement for the year ended 30 June 2009

Sales revenue 6,930,000 6,930,000

less Cost of Goods Sold
Inventory at beginning 1,854,600
plus Purchases 5,134,140
6,988,740
less Inventory at End 2,051,940 4,936,800
Gross Profit 1,993,200

less Operating Expenses

Rent 376,200
Wages 816,420
Depreciation
Motor Vehicle 29,700
Equipment 79,200
Bad and Doubtful Debts 118,800
Advertising 160,380
Insurance 12,540
Interest 99,000 1,692,240
Loss on Disposal of Vehicle(s) 9,900
Profit before tax 291,060
less Company Income Tax Expense 135,080
Profit after tax 155,980

Latrobe Industries
Statement of Changes in equity for the year ended 30 June 2009

Equity 1 July 2008 1,386,000

Share capital, 1 July 2008 924,000
Issue of Share Capital 0
Share capital, 30 June 2009 924,000
Reserves 1 July 2008 132,000
Transfers from retained earnings 132,000
Reserves 30 June 2009 264,000
Retained Earnings 1 July 2008 330,000
Profit for the period 155,980
Transfers to reserves -132,000
Interim Dividend paid -46,200
Final Dividend declared -92,400
Retained Earnings 30 June 2009 215,380 ________
Equity 30 June 2009 1,403,380
 Latrobe Industries
Comparative Statement of Financial Position as 30 June
2008 2009
Current Assets
Cash at Bank 138,600 0
Accounts Receivable 970,200 1,313,400
less Allowance for doubtful
debts -56,100 -82,500
Inventory 1,854,600 2,051,940
Prepayments 19,140 15,180
2,926,440 3,298,020
Non-current Assets
Equipment 792,000 792,000
less Accumulated Depreciation -396,000 -475,200
Motor Vehicles 165,000 264,000
less Accumulated Depreciation -55,440 -50,820
505,560 529,980
3,432,000 3,828,000
Current liabilities
Accounts payable 1,122,000 1,254,000
Accrued Exp 95,700 143,220
Company tax payable 99,000 130,680
Deferred tax payable 0 4,400
Dividend payable 69,300 92,400
Bank Overdraft 0 139,920
1,386,000 1,764,620
Non-current liabilities
Notes Payable 660,000 660,000

Equity
Share capital 924,000 924,000
General Reserve 132,000 264,000
Retained Earnings 330,000 215,380
1,386,000 1,403,380
3,432,000 3,828,000

Additional Information: The motor vehicle that was sold during the period was originally
purchased for $66,000

Required:

Prepare a cash flow for Latrobe Enterprises for the year ended 30th June 2009. (Show all
workings). The reconciliation notes are not required. (15 marks)