ACCTG 211 Semester 1 2024 Assignment 1
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ACCTG 211 Semester 1 2024 Assignment 1
ASSIGNMENT 1
Instructions:
1. Record your answers in the Assignment 1 Answer Booklet document.
2. Complete the quizzes related to these questions on Canvas/Assignments/Assignment 1 – Statement of Cash Flows
QUESTION 1
Determine the ‘cash and cash equivalents’ amount to include in a Statement of Cash Flows in the two scenarios below:
|
|
Scenario 1 |
Scenario 2 |
|
Short term investment (45 days) |
$20 000 |
$70 000 |
|
Foreign bank account (a significant risk of change in value) |
- |
4 000 |
|
Short term investment (120 days) |
- |
10 000 |
|
Equity Investment (consists of redeemable preference shares that are redeemable in two months) |
45 000 |
- |
|
Cash at bank |
78 000 |
33 000 |
|
Bank overdraft |
- |
5 780 |
|
Cash and cash equivalents = |
$ |
$ |
QUESTION 2
Spring Ltd requires a Statement of Cash Flows to be prepared for the year ended 31 March 2024; the following information has been provided.
|
Spring Ltd Draft Statement of Financial Position as at 31 March |
||
|
|
2023 |
2024 |
|
Cash |
$176 000 |
$237 000 |
|
Accounts receivable |
220 000 |
280 000 |
|
Allowance for doubtful debts |
(30 000) |
(40 000) |
|
Inventory |
90 000 |
100 000 |
|
Interest income receivable |
- |
2 000 |
|
Plant and equipment |
900 000 |
1 074 000 |
|
Accumulated depreciation |
(80 000) |
(100 000) |
|
Long term investment |
80 000 |
80 000 |
|
Total assets |
$1 356 000 |
$1 633 000 |
|
Accounts payable |
89 000 |
70 000 |
|
Interest payable |
1 000 |
2 000 |
|
Dividends payable |
5 000 |
32 000 |
|
Long term loans |
110 000 |
198 000 |
|
Share capital |
470 000 |
600 000 |
|
Retained earnings |
681 000 |
731 000 |
|
Total equity and liabilities |
$1 356 000 |
$1 633 000 |
|
Spring Ltd Draft SCI for the year ended 31 March 2024: |
|
|
Sales |
$885 000 |
|
Interest income |
5 000 |
|
Less Expenses: |
|
|
COGS |
240 000 |
|
Depreciation expense |
90 000 |
|
Interest expense |
6 000 |
|
Doubtful debts expense |
40 000 |
|
Salaries and wages expense |
200 000 |
|
Income tax expense |
44 000 |
|
Other expenses |
160 000 |
|
Profit after tax |
$ |
Additional information:
· Spring Ltd classifies interest expense and dividends paid as cash outflows from operating activities and classifies interest income as cash inflows from investing activities.
· During the year, Plant costing $100 000 was purchased and paid for by the issuing $100 000 of Spring Ltd shares.
· During the year, Equipment that originally cost $100 000 was sold for $30 000 cash.
· During the year, a long-term loan of $30 000 was specifically organised for the purchase of plant costing $30 000.
Required:
(a) Prepare the Spring Ltd general ledger accounts provided in the answer booklet.
(b) Prepare a Statement of Cash Flows for Spring Ltd, for the year ended 31 March 2024, in accordance with NZ IAS 7 Statement of Cash Flows. Spring Ltd uses the indirect method for the cash flows from operating activities (CFOA) section.
(c) Prepare a Statement of Cash Flows for Spring Ltd, for the year ended 31 March 2024, in accordance with NZ IAS 7 Statement of Cash Flows. Assume in (c) that Spring Ltd uses the direct method for the cash flows from operating activities (CFOA) section. You are also required to prepare the reconciliation required by FRS 44 New Zealand Additional Disclosures.
(d) What if the cash flows related to interest expense, dividends, and interest income had been classified differently? Complete the table in the answer booklet.
QUESTION 3
The following information has been extracted from the financial records of Frankie Ltd:
|
|
31/3/2024 |
31/3/2023 |
|
Cash |
$100 |
$15 |
|
Accounts receivable |
10 300 |
10 980 |
|
Inventory |
13 800 |
14 500 |
|
Plant and equipment - at cost |
15 905 |
8 785 |
|
Accumulated Depreciation |
3 200 |
2 700 |
|
Accounts payable |
15 000 |
13 808 |
|
GST payable |
400 |
362 |
|
Operating expenses payable |
4 300 |
3 710 |
|
Dividends payable |
305 |
- |
|
Long-term borrowings |
4 000 |
2 000 |
|
Share capital |
11 000 |
10 200 |
|
Retained earnings |
1 900 |
1 500 |
|
|
|
|
|
Sales |
120 000 |
|
|
Cost of goods sold |
85 000 |
|
|
Operating expenses |
30 000 |
|
|
Interest expense |
360 |
|
|
Depreciation expense |
878 |
|
|
Tax expense |
1 300 |
|
|
Profit after tax |
2 462 |
|
Required:
(a) Reconstruct the general ledger accounts provided in the answer booklet. The GST rate is 15%.
(a) Prepare the part of the Statement of Cash Flows for Frankie Ltd provided in the answer booklet, in accordance with NZ IAS 7 Statement of Cash Flows, for the year ended 31 March 2024.
QUESTION 4
Below is an excerpt from the 2023 integrated annual report of Moana New Zealand:
Refer to the consolidated statement of cash flows of Moana New Zealand for the year ended 30 September 2023 and answer the questions in the Canvas quizzes.
The annual report is accessible on Canvas under Modules/Assignments 1-5.
2024-03-16