The following information is provided for Identikit Ltd for the period ended 30 June 2015: \[\begin{array} { | l | r | } \hline & \$ 0 \\ \hline \text { Cost of goods sold for the year } & 460 \\ \hline \text { Discounts received for early payment to suppliers } & 40 \\ \hline \text { Opening balance of trade creditors } & 100 \\ \hline \text { Closing balance of trade creditors } & 120 \\ \hline \text { Opening balance of inventory } & 78 \\ \hline \text { Closing balance of inventory } & 160 \\ \hline \text { Sales for the year } & 1200 \\ \hline \text { Discounts provided to customers for early payment } & 120 \\ \hline \text { Sales returns } & 120 \\ \hline \text { Opening balance of accounts receivable } & 300 \\ \hline \text { Closing balance of accounts receivable } & 270 \\ \hline \text { Bad debts expense } & 65 \\ \hline \text { Opening balance of tax payable } & 60 \\ \hline \text { Closing balance of tax payable } & 30 \\ \hline \text { Tax expense } & 15 \\ \hline \text { Interest expense } & 27 \\ \hline \text { Dividends paid } & 73 \\ \hline \end{array}\] All transactions are in cash unless otherwise indicated.What is the net cash flow from operating activities for the period?

A) Cash inflow $371 000 B) Cash inflow $298 000 C) Cash outflow $554 000 D) Cash inflow $530 000 A) Cash inflow $371 000 B) Cash inflow $298 000 C) Cash outflow $554 000 D) Cash inflow $530 000

Crows Ltd's books show the following information for the preparation of its statement of cash flows for the year ended 30 June 2014: \[\begin{array} { | l | r | r |} \hline & \text { 30-Jun-13 } & \text { 30-Jun-14 } \\ \hline \text { Accounts receivable } & 69000 & 87000 \\ \hline \text { Allowance for doubtful debts } & 2400 & 3000 \\ \hline \text { Prepaid rent } & 37200 & 24600 \\ \hline \text { Accounts payable } & 58200 & 67200 \\ \hline \text { Net profit for the year } & & 450000 \\ \hline \end{array}\] What is the amount of net cash from operating activities for the year ended 30 June 2014?

A) $445 800 B) $453 600 C) $454 200 D) $489 000 A) $445 800 B) $453 600 C) $454 200 D) $489 000

The following are cash flow transactions for Mungo Ltd: $\begin{array}{|l|l|} \hline \text { I } & \text { Changes in inventories } \\ \hline \text { II } & \text { Changes in operating receivables } \\ \hline \text { III } & \text { Non-cash items } \\ \hline \text { IV } & \text { Changes in operating payables } \\ \hline \mathrm{V} & \text { Purchase of property plant and equipment } \\ \hline \mathrm{VI} & \text { Issue of ordinary shares } \\ \hline \end{array}$ Which of the following combinations includes all of the transactions that will determine cash flows from operating activities of Mungo Ltd that are in accordance with AASB 107 Statement of Cash Flows?

A) I, II, III, IV and V B) I, II, III, IV and VI C) I, II, III and IV D) I, II and III A) I, II, III, IV and V B) I, II, III, IV and VI C) I, II, III and IV D) I, II and III

Mopoke Ltd provides the following information that relates to the period ended 30 June 2014: \[\begin{array} { | l | r | } \hline & \$ 0 \\ \hline \text { Sales for the year } & 1200 \\ \hline \text { Discounts provided to customers for early payment } & 500 \\ \hline \text { Doubtful debts expense } & 150 \\ \hline \text { Opening balance of accounts receivable } & 300 \\ \hline \text { Closing balance of accounts receivable } & 900 \\ \hline \text { Bad debts expense } & 20 \\ \hline \text { Opening balance of the provision for doubtful debts } & 20 \\ \hline \text { Closing balance of the provision for doubtful debts } & 10 \\ \hline \end{array}\] What amount of cash was received from customers during the year?

A) $1 780 000 B) $930 000 C) $1 720 000 D) $920 000 A) $1 780 000 B) $930 000 C) $1 720 000 D) $920 000

Exam 19: The Statement of Cash Flows

The following information is provided for Identikit Ltd for the period ended 30 June 2015: \ 0 Cost of goods sold for the year 460 Discounts received for early payment to suppliers 40 Opening balance of trade creditors 100 Closing balance of trade creditors 120 Opening balance of inventory 78 Closing balance of inventory 160 Sales for the year 1200 Discounts provided to customers for early payment 120 Sales returns 120 Opening balance of accounts receivable 300 Closing balance of accounts receivable 270 Bad debts expense 65 Opening balance of tax payable 60 Closing balance of tax payable 30 Tax expense 15 Interest expense 27 Dividends paid 73 All transactions are in cash unless otherwise indicated.What is the net cash flow from operating activities for the period?

(Multiple Choice)

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Question 61

An item considered to be a cash equivalent in one company may not be considered as such in another.This is because:

(Multiple Choice)

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(79)

Question 62

Entities are encouraged to report their operating cash flows using the direct method.

(True/False)

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Question 63

In accordance with AASB 107,non-cash investing and financing transactions are required to be included in the statement of cash flows.

(True/False)

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Question 64

Hybrid Ltd provides the following information for the period ended 30 June 2015: What was the amount of cash used to acquire plant and equipment?

(Multiple Choice)

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Question 65

Joplyn Ltd provides the following information for the period ended 30 June 2015: All transactions are in cash unless otherwise indicated.What is the net cash flow from investing activities?

(Multiple Choice)

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Question 66

'Cash flows from operations would seem to provide a reasonable guide to the ability of a firm to service debt'.Discuss.

(Essay)

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Question 67

Hansard Ltd provides the following information for the period ended 30 June 2015: What was the amount of cash used to acquire plant and equipment?

(Multiple Choice)

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Question 68

Crows Ltd's books show the following information for the preparation of its statement of cash flows for the year ended 30 June 2014: 30-Jun-13 30-Jun-14 Accounts receivable 69000 87000 Allowance for doubtful debts 2400 3000 Prepaid rent 37200 24600 Accounts payable 58200 67200 Net profit for the year 450000 What is the amount of net cash from operating activities for the year ended 30 June 2014?

(Multiple Choice)

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(74)

Question 69

Discuss the differences between the direct and indirect methods when reporting cash flows from operating activities.

(Essay)

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Question 70

The following are cash flow transactions for Mungo Ltd: I Changes in inventories II Changes in operating receivables III Non-cash items IV Changes in operating payables Purchase of property plant and equipment Issue of ordinary shares Which of the following combinations includes all of the transactions that will determine cash flows from operating activities of Mungo Ltd that are in accordance with AASB 107 Statement of Cash Flows?

(Multiple Choice)

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(91)

Question 71

Mopoke Ltd provides the following information that relates to the period ended 30 June 2014: \ 0 Sales for the year 1200 Discounts provided to customers for early payment 500 Doubtful debts expense 150 Opening balance of accounts receivable 300 Closing balance of accounts receivable 900 Bad debts expense 20 Opening balance of the provision for doubtful debts 20 Closing balance of the provision for doubtful debts 10 What amount of cash was received from customers during the year?

(Multiple Choice)

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Question 72

To calculate the cash flow associated with an accrued expense,any increase in the associated liability should be added to the expense.

(True/False)

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Question 73

The statement of cash flows is argued by researchers to be a more reliable statement than accrual statements.

(True/False)

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Question 74

AASB 107 defines cash equivalents to include:

(Multiple Choice)

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Question 75

When creating a statement of cash flows certain items must be disclosed separately because of their significance,including:

(Multiple Choice)

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Question 76

Describe the application of AASB 107 to interest and dividends received.

(Essay)

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Question 77

Exam 19: The Statement of Cash Flows

An item considered to be a cash equivalent in one company may not be considered as such in another.This is because:

Entities are encouraged to report their operating cash flows using the direct method.

In accordance with AASB 107,non-cash investing and financing transactions are required to be included in the statement of cash flows.

Hybrid Ltd provides the following information for the period ended 30 June 2015: What was the amount of cash used to acquire plant and equipment?

Joplyn Ltd provides the following information for the period ended 30 June 2015: All transactions are in cash unless otherwise indicated.What is the net cash flow from investing activities?

'Cash flows from operations would seem to provide a reasonable guide to the ability of a firm to service debt'.Discuss.

Hansard Ltd provides the following information for the period ended 30 June 2015: What was the amount of cash used to acquire plant and equipment?

Discuss the differences between the direct and indirect methods when reporting cash flows from operating activities.

To calculate the cash flow associated with an accrued expense,any increase in the associated liability should be added to the expense.

The statement of cash flows is argued by researchers to be a more reliable statement than accrual statements.

AASB 107 defines cash equivalents to include:

When creating a statement of cash flows certain items must be disclosed separately because of their significance,including:

Describe the application of AASB 107 to interest and dividends received.

An Overview of the Australian External Reporting Environment

The Conceptual Framework of Accounting and Its Relevance to Financial Reporting

Theories of Accounting

An Overview of Accounting for Assets

Depreciation of Property, plant and Equipment

Revaluations and Impairment Testing of Non-Current Assets

Inventory

Accounting for Intangibles

Accounting for Heritage Assets and Biological Assets

An Overview of Accounting for Liabilities

Accounting for Leases

Accounting for Employee Benefits

Share Capital and Reserves

Accounting for Financial Instruments

Revenue Recognition Issues

The Statement of Comprehensive Income and Statement of Changes in Equity

Accounting for Share-Based Payments

Accounting for Income Taxes

Accounting for the Extractive Industries

Accounting for General Insurance Contracts

Accounting for Superannuation Plans

Events Occurring After the End of the Reporting Period

Segment Reporting

Related Party Disclosures

Earnings Per Share

Accounting for Group Structures

Further Consolidation Issues I: Accounting for Intragroup Transactions

Further Consolidation Issues II: Accounting for Non-Controlling Interests

Further Consolidation Issues IV: Accounting for Changes in the Degree of Ownership of a Subsidiary

Accounting for Equity Investments,including Investments in Associates and Joint Arrangements

Accounting for Foreign Currency Transactions

Translating the Financial Statements of Foreign Operations

Accounting for Corporate Social Responsibility

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