Week 6 – On-Campus Class Questions

Pre-class Question

John Street Traders

Balance Sheet as at 31 Dec 2021
2015

Current Assets Current Liabilities

Bank $ 5000 $ Accounts Payable $ $ 4000
Accounts Receivable 12000
Stock 14000 31000 Non Current Liabilities
Loan 15000
Non Current Assets Total Liabilities 19000
Equipment 20000
- Acc Depn -5000 15000 Owner's Equity 27000

Total Assets $ 46000 Total Liabilities & Owners' Equity $ 46000

Profit or Loss Statement for year ended 31 Dec 2022
2016

Sales
Cash $ 24000 $
Credit 48000 72000
less
Cost of Sales 50000
Gross Profit 22000

less
Other expenses
Wages 15000
Advertising 1200
Depreciation 2500 18700

Net Profit $ 3300

John Street Traders
Balance Sheet as at 31 Dec2022
2016

Current Assets Current Liabilities

Bank $ 11500 $ Accounts Payable $ 11000 $
Accounts Receivable 10000 Accrued Wages 3000 14000
Stock 9000 Non Current Liabilities
Prepaid Advertising 300 30800 Loan 8000
Total Liabilities 22000
Non Current Assets Owner's Equity
Equipment 24000 Capital @ beg 20000
- Acc Depn -7500 16500 Retained Earnings @ beg 7000
Drawings -5000
Profit / (Loss) 3300 25300

Total Assets $ 47300 Total Liabilities & Owners' Equity $ 47300

Note: No Non-Current Assets were sold during 2022
Required: Prepare a Cash Flow Statement for the year ended 31 December 2022.
Show all workings.
In-class/Past Exam Question

Required: Prepare a classified Statement of Cash Flows for the year ending 30 June 2021.
Show all workings.