Question

Could you please help me in the following questions. Could youplease take a screenshot of the final cash flow statement etc.Cheers

Regards

Adam

Statement of Cash Flows

You are provided the following financial information for TomHill Form Works, a company specialising in the production ofmoon-sized Imperial battle stations:

Tom HillForm Works

COMPARATIVE BALANCE SHEETS

AS AT 30th JUNE

	2015		2014
	$'000's		$’000's
Current Assets
Cash on Hand	35		12
Cash at Bank	209		98
Accounts Receivable (net)	58		54
Inventory	310		330
Prepaid Expenses	35	647	33	527
Non-Current Assets
Planet destroying Laser	840		760
less Acc. Depreciation	440	400	408	352
Buildings		80		180
Total Assets		1 127		1 059
Current Liabilities
Bank Overdraft	20		-
Accounts Payable	64		80
Accrued Stormtroopers wages	63		89
Loan	12	159	-	169
Non-Current Liabilities
Loan		18		-
Total Liabilities		177		169
Net Assets		950		890
Equity
T.Hill, Capital		950		890

Tom Hill Form Works

INCOME STATEMENT

FOR THE YEAR ENDED 30th JUNE2015

			$'000's
Net Sales				1 990
COS		1 300
Less: Discount received		5		1 295
Gross Profit:				695
Other Revenue:
Gain on sale of building				60
Interest received				8
				763
Expenses:
Selling & Admin Expense		517
Doubtful Debts Expense		9
Interest Expense		12		538
Profit				225

Additional Information:

Selling & Admin Expense includes depreciation expense of$32,000.

The owner T.Hill, contributed $20,000 during the year

A new planet destroying laser was purchased by extending theloan, and paying the balance in cash

A building which had originally cost $100,000 was sold for$160,000 cash, making the business a gain of $60,000

REQUIRED:

Answer this question on the pro formaprovided

a. Using the template provided below, prepare a statement ofcash flows. Show all calculations on the proforma.

b. The owner of Tom Hill Form Works can’t understand why the cash flowfrom operations is so different to the profit figure. As he has atendency to react quite badly to negativenews, carefully explain to Mr Hill at least two ofthe factors that may be causing thisdifference.

c. Explain what information is provided by a Statement of Cash Flowthat is not provided by the other General Purpose Financial Reportsyou have been introduced to in this unit (Income Statement,Statement of Changes in Equity & BalanceSheet)?

Tom Hill Form Works

Cash Flow Statement

FOR THE YEAR ENDED 30thJUNE 2015

	$’000		$’000
Cash Flows from Operating Activities
Receipts from customers
Payments to suppliers & employees
Cash generated by operations
Interest received
Interest paid
Cash Flows from Investing Activities
Proceeds from sale of buildings
Payment for Laser
Cash Flows from Financing Activities
Contribution by owner
Drawings
Net increase / decrease in cash held
Cash at the beginning of the year
Cash at the end of the year

ALL WORKINGS MUST BE PRESENTED BELOW OR THE CASHFLOWSTATEMENT WILL RECEIVE NO MARKS