Additional Cash Flow Statement Question 1 The financial statements of Alpha Limited are presented below; Alpha Limited

Balance Sheets as at 31 December 2008 000 Current Assets Cash Accounts Receivable Provision for Doubtful Debts Inventory Prepaid Insurance Non-Current Assets Land Buildings Accumulated Depreciation - Buildings Plant and Equipment Accumulated Depreciation - Plant and Equipment Motor Vehicles Accumulated Depreciation - Motor Vehicles Goodwill Total Assets Current Liabilities Accounts Payable Interest Payable Final Dividend Payable Income Tax Payable Non-Current Liabilities Bank Loan Total Liabilities NET ASSETS Shareholders' Equity Share Capital Revaluation Surplus Retained Profits TOTAL SHAREHOLDERS' EQUITY 240 700 (100) 510 90 1,440 1,600 1,000 (500) 400 (210) 90 (50) 500 2,830 4,270 800 50 300 220 1,370 400 1,770 $2,500 1,800 100 600 $2,500 2009 000 715 495 (65) 610 70 1,825 1,800 1,100 (590) 400 (260) 90 (55) 500 2,985 4,810 800 150 160 1,110 800 1,910 $2,900 2,150 50 700 $2,900

Alpha Limited Income Statement for the year ended 31 December 2009 000 Sales Less: Cost of Goods Sold Gross Profit Profit on Sale of Motor Vehicle Less: Expenses Bad Debts Expense Depreciation Expense - Buildings Depreciation Expense - Plant and Equipment Depreciation Expense - Motor Vehicles Interest Expense Other Expenses Operating Profit before Income Tax Less: Income Tax Expense Operating Profit After Income Tax 000 6,400 5,000 1,400 5 1,405 60 90 50 20 180 565

965 440 160 $280

Additional Information Land was the only asset revalued during the year. During the year, a bonus dividend of $150,000 was paid out of the Revaluation Surplus. The carrying amount (written down value) of the motor vehicle sold (as at the date of sale) was $5,000.

Required: i. Prepare a Cash Flow Statement (using the direct method) for Alpha Limited for the year ended 31 December 2009 in accordance with AASB107. ii. Prepare a note reconciling the operating profit after income tax with net cash flow from operating activities.

Additional Cash Flow Statement Question 2 The financial statements of Cedar Limited are presented below; Cedar Limited Balance Sheets as at 31 December 2008 '000 Current Assets Cash Accounts Receivable Provision for Doubtful Debts Inventory Prepaid Insurance Non-Current Assets Land Buildings Accumulated Depreciation - Buildings Plant and Equipment Accumulated Depreciation - Plant and Equipment Motor Vehicles Accumulated Depreciation - Motor Vehicles 175 510 (50) 405 30 1,070 1,800 700 (250) 600 (185) 300 (120) 2,845 3,915 2009 '000 720 (55) 315 15 995 2,250 700 (290) 600 (200) 300 (150) 3,210 4,205

Total Assets Current Liabilities Bank Overdraft Accounts Payable Final Dividend Payable Provision for Income Tax Accrued Interest Non-Current Liabilities Bank Loan Total Liabilities NET ASSETS Shareholders' Equity Share Capital Revaluation Surplus General Reserve Retained Profits TOTAL SHAREHOLDERS' EQUITY

400 150 305 15 870 500 1,370 $2,545

25 295 190 370 20 900 100 1,000 $3,205

1,400 100 150 895 $2,545

1,700 200 350 955 $3,205

Cedar Limited Income Statement for the year ended 31 December 2009 '000 Sales Less: Cost of Goods Sold Gross Profit Profit on sale of Plant and Equipment Less: Expenses Bad Debts Expense Depreciation Expense - Buildings Depreciation Expense - Plant and Equipment Depreciation Expense - Motor Vehicles Interest Expense Other Expenses Operating Profit before Income Tax Less: Income Tax Expense Operating Profit After Income Tax '000 6,450 4,700 1,750 5 1,755 45 40 35 30 50 625

825 930 370 $560

Additional Information There were no bonus dividends paid during the year. The written down value of the plant and equipment sold was $10,000. Land was revalued during the year.

Required i. Prepare a Statement of Cash Flows (using the direct method) for Cedar Limited for the year ended 31 December 2009 in accordance with AASB107. ii. Prepare a note reconciling the operating profit after income tax with net cash flow from operating activities.

Additional Cash Flow Statement Question 3 The financial statements of Allcare Limited are presented below; Allcare Limited Balance Sheets as at 31 December 2008 '000 Current Assets Cash Accounts Receivable Provision for Doubtful Debts Inventory Prepaid Insurance Non-Current Assets Land Buildings Accumulated Depreciation - Buildings Plant and Equipment Accumulated Depreciation - Plant and Equipment Motor Vehicles Accumulated Depreciation - Motor Vehicles 625 (70) 345 40 940 2,000 900 (300) 600 (200) 400 (150) 3,250 4,190 2009 '000 500 480 (90) 460 50 1,400 2,350 900 (365) 620 (210) 400 (190) 3,505 4,905

Total Assets Current Liabilities Bank Overdraft Accounts Payable Final Dividend Payable Provision for Income Tax Accrued Interest Non-Current Liabilities Bank Loan Total Liabilities NET ASSETS Shareholders' Equity Share Capital Revaluation Surplus General Reserve Retained Profits TOTAL SHAREHOLDERS' EQUITY

130 300 185 255 20 890 400 1,290 $2,900

320 145 350 40 855 265 1,120 $3,785

1,350 200 150 1,200 $2,900

1,800 250 150 1,585 $3,785

Allcare Limited Income Statement for the year ended 31 December 2009 '000 Sales Less: Cost of Goods Sold Gross Profit Proceeds from Sale of Equipment Less: Expenses Bad Debts Expense Carrying Amount of Equipment Sold Depreciation Expense - Buildings Depreciation Expense - Plant and Equipment Depreciation Expense - Motor Vehicles Insurance Expense Interest Expense Rent Expense Other Expenses Operating Profit before Income Tax Less: Income Tax Expense Operating Profit After Income Tax '000 7,200 5,200 2,000 10 2,010 55 15 65 40 40 95 75 100 545

1,030 980 350 $630

Additional Information During the year, a $100,000 bonus dividend was paid out of the Revaluation Surplus. Land was the only asset revalued during the year.

Required i. Prepare a Statement of Cash Flows (using the direct method) for Allcare Limited for the year ended 31 December 2009 in accordance with AASB107. ii. Prepare a note reconciling the operating profit after income tax with net cash flow from operating activities.

Additional Cash Flow Statement Question 4 The financial statements of Belgrave Limited are presented below; Belgrave Limited Balance Sheets as at 31 December ('000s) 2008 Current Assets Cash Accounts Receivable Provision for Doubtful Debts Inventory Prepaid Insurance Non-Current Assets Land Plant and Equipment Accumulated Depreciation - Plant and Equipment Motor Vehicles Accumulated Depreciation - Motor Vehicles Furniture and Fittings Accumulated Depreciation - Furniture and Fittings Total Assets Current Liabilities Accounts Payable Salaries Payable Interest Payable Accrued Expenses Income Tax Payable Final Dividend Payable Non-Current Liabilities Borrowings Total Liabilities NET ASSETS Shareholders Equity Share Capital Revaluation Surplus General Reserve Retained Profits TOTAL SHAREHOLDERS' EQUITY 410 600 (30) 855 100 1,935 1,980 1,600 (400) 450 (70) 320 (100) 3,780 5,715

2009 443 850 (50) 700 100 2,034 2,330 2,410 (430) 390 (65) 320 (120) 4,835 6,878

670 190 15 50 30 60 1,015 900 1,915 $3,800

890 20 40 50 70 1,070 1,260 2,330 $4,548

1,200 500 900 1,200 $3,800

1,200 650 1,100 1,598 $4,548

Belgrave Limited Income Statement for the Year Ended 31 December 2009 ('000s) Sales Less: Cost of Goods Sold Gross Profit Proceeds from Sale of Motor Vehicles 3,150 1,700 1,450 50 1,500

Less Expenses: Bad Debts Expense Insurance Expense Salaries Expense Interest Expense Other Expenses Depreciation Expense Plant and Equipment Depreciation Expense Motor Vehicles Depreciation Expense Furniture and Fittings Carrying Amount of Motor Vehicle Sold Total Expenses Profit Before Income Tax Less: Income Tax Expense Profit After Tax

40 60 310 35 167 30 30 20 60 752 748 50 698

Additional Information Land was revalued upwards during the year by $150,000. Plant to the value of $450,000 was acquired during the year through an issue of a long term note. The amount has been included in Borrowings. There was an interim dividend paid during the year.

Required: (a) Prepare a Cash Flow Statement (using the direct method) for Belgrave Limited for the year ended 31 December 2009 in accordance with AASB 107. (b) Prepare a note reconciling the operating profit after tax with net cash flows from operating activities.