RECENT ASSIGNMENT

Group Assignment
Unit: TACC404 – Principles of Financial Reporting
Submission Date: Week 10 on 15th SEP
Total Marks: The assignment is worth 20% of the total marks
Instructions:
1. Students are required to answer all attached questions.
2. Your answer must be both uploaded to Moodle in word file and handed over a printed copy.
3. You will need to support your answers with appropriate data, calculations, workings and references if necessary.
4. Include a title/cover page containing the subject title and code and the name, student numbers.
5. Your answers must be typed in word document and save as TACC404_Firstname_Surename_Student Number.
Eg: TACC404_John_Smith_20130000
Group Assignment
Cash flow statement (20 marks)
The data below and opposite were prepared for the internal management of SYDNEY Ltd for the year ended 30 June 2015.
Additional information in respect of the year ended 30 June 2015
(a) The plant sold during the year originally cost $30,000.
(b) 20,000 ordinary shares were issued at a price of $2.50 per share.
(c)1,250 ordinary shares in a listed company were bought at a price of $4 per share.
(d) Accrued expenses relate to wages and interest as follows:
Wages Interest
Balance at 30/6/14 $6,200 $2,500
Balance at 30/6/15 6,920 2,680

(e) The over draft facility extends to a limit of $15,000, payable on demand. This facility is regarded as part of the overall cash management in the company.
SYDNEY LTD
Statements of Financial Position
as at 30 June
2015 2014
Assets
Cash at bank
Accounts receivable
Allowance for doubtful debts
Inventory
Interest receivable
Prepaid Insurance
Marketable securities
Plant and Equipment
Accumulated depreciation – plant and equipment
Deferred tax asset
Total assets
Liabilities
Bank overdraft
Accounts payable
Accrued expenses
Unearned Revenue
Current Tax Liability
Long-service leave payable
Final dividend payable
Convertible notes
Deferred tax liability
Equity
Share capital
General reserve
Retained earnings
Total liabilities and equity
$
$
$
$
82,000
121,600
(10,100)
132,000
860
960
35,000
416,000
(74,600)
8,200
711, 920
7,600
69,000
9,600
1,100
6,800
4,700
40,000
80,000
6,400
225,200
400,000
40,000
46,720
486,720
711,920
$
$
$
$
78,000
112,800
(8,900)
123,200
940
810
30,000
342,000
(62,300)
7,720
624, 270
9,430
57,400
8,700
410
6,400
3,140
17,500
60,000
6,040
169,020
350,000
40,000
65,250
455,250
624,270
SYDNEY LTD
Statement of Profit or Loss
for the year ended 30 June 2015
Sales revenue
Interest Revenue
Dividend revenue
Discount Received
Proceeds-sale of plant
Cost of sales
Carrying amount of plant sold
Depreciation – plant
Discount allowed
Bad debts expense
Insurance expense
Interest expense
long-service leave expense
Wages expense
Profit before income tax
Income tax expense
Profit for the year
$
261,840
10,500
31,800
1,410
11,200
1,200
2,120
1,560
97,600
$
$
$
432,000
1,200
1,500
680
12,000
447,380
419,230
28,150
(6,680)
21,470
Required
(A) Prepare SYDNEY Ltd’s statement of cash flows for the year ended 30 June 2015 in accordance with AASB 107, using the direct method. (show your workings for the calculations. 15 marks)
(B) Prepare an appropriate note to the financial statement to justify the definition of cash and cash equivalents used. (5 marks)
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