Question 3 (25 marks)
The balance sheets of Supermart Limited for the years ended 31/3/2022 and 31/3/2021 are given below:
31/3/2022
31/3/2021
Assets
$
$
Land
4,750,000
2,500,000
Building
4,000,000
3,750,000
Accumulated depreciation
-300,000
Plant and Equipment
2,085,000
1,841,250
Less Accumulated depreciation Plant & Equipment
-1,175,000
-975,000
Investment in Equity Instruments
1,875,000
1,125,000
Bank
18,750
12,500
Financial Assets Held for Trading
1,000,000
625,000
Dividends Receivable
80,000
37,500
Accounts receivable
1,500,000
1,587,500
Inventory
100,000
156,250
Total Assets
14,233,750
10,360,000
Liabilities
Accounts Payable
250,000
625,000
Dividend Payable
375,000
350,000
Accrued Expenses
500,000
125,000
Accrued Interest
187,500
53,750
Tax Payable
268,750
187,500
Long Term Loan Due within One Year
250,000
225,000
Long Term Loan
750,000
1,000,000
Total Liabilities
2,581,250
2,566,250
Net assets
11,652,500
7,793,750
Shareholders’ Equity
Contributed equity
8,750,000
6,525,000
Asset Revaluation Reserve
1,112,500
625,000
Fair Value Reserve
943,750
443,750
Retained profits
846,250
200,000
Total Shareholder equity
11,652,500
7,793,750
Question 3 continued
The Statement of Comprehensive Income of Supermart Limited for the year ended 31/3/2022 is given below:
$
Revenue
13,250,000
Other Income and Gains
650,000
Total Income
13,900,000
Less Cost of Goods Sold
-10,693,750
Gross Profit
3,206,250
Less: Operating Expenses
-1,943,750
Operating Profit
1,262,500
Less Interest Expense
-162,500
Profit Before Tax
1,100,000
Taxation
-268,750
Profit for the year
831,250
Other Comprehensive income:
Increase in Asset Revaluation Reserve
487,500
Fair Value Reserve
500,000
Total comprehensive income
1,818,750
Additional Information for year ended 31st March 2022:
Other Income and gains includes the following:
Dividend Income $312,500
Some items of plant and equipment were disposed on 1 April 2021. Gains from Disposal of Plant and equipment (Carrying Value = 112,500; Accumulated Depreciation $50,000) is $25,000.
Gains from Revaluation of financial assets held for trading $250,000
Interest Revenue $62,500
The balance in the Asset Revaluation Reserve Account is in relation to revaluation of land.
Land was acquired for cash considerations. There was no disposal of land during the year.
Building was revalued for the first time in 2022 and revaluation loss of $125,000 was included in operating expenses. Depreciation of building for the year ended 31st March 2022 is $75,000
Financial assets held for trading were acquired for cash considerations.
The company issued new shares for cash considerations.
Included in other income and gains is an amount $250,000 related to gain from revaluation of financial assets held for trading.
Included in operating expenses are accrued expenses of $437,500 and depreciation charges for building and plant and equipment.
Dividends were paid in July 2021.
Required
Prepare a Statement of Cash Flows for Supermart Limited. for the year ended 31st March 2022.
Question 3 (25 marks)
The balance sheets of Supermart Limited for the years ended 31/3/2022 and 31/3/2021 are given below:
31/3/2022
31/3/2021
Assets
$
$
Land
4,750,000
2,500,000
Building
4,000,000
3,750,000
Accumulated depreciation
-300,000
Plant and Equipment
2,085,000
1,841,250
Less Accumulated depreciation Plant & Equipment
-1,175,000
-975,000
Investment in Equity Instruments
1,875,000
1,125,000
Bank
18,750
12,500
Financial Assets Held for Trading
1,000,000
625,000
Dividends Receivable
80,000
37,500
Accounts receivable
1,500,000
1,587,500
Inventory
100,000
156,250
Total Assets
14,233,750
10,360,000
Liabilities
Accounts Payable
250,000
625,000
Dividend Payable
375,000
350,000
Accrued Expenses
500,000
125,000
Accrued Interest
187,500
53,750
Tax Payable
268,750
187,500
Long Term Loan Due within One Year
250,000
225,000
Long Term Loan
750,000
1,000,000
Total Liabilities
2,581,250
2,566,250
Net assets
11,652,500
7,793,750
Shareholders’ Equity
Contributed equity
8,750,000
6,525,000
Asset Revaluation Reserve
1,112,500
625,000
Fair Value Reserve
943,750
443,750
Retained profits
846,250
200,000
Total Shareholder equity
11,652,500
7,793,750
Question 3 continued
The Statement of Comprehensive Income of Supermart Limited for the year ended 31/3/2022 is given below:
$
Revenue
13,250,000
Other Income and Gains
650,000
Total Income
13,900,000
Less Cost of Goods Sold
-10,693,750
Gross Profit
3,206,250
Less: Operating Expenses
-1,943,750
Operating Profit
1,262,500
Less Interest Expense
-162,500
Profit Before Tax
1,100,000
Taxation
-268,750
Profit for the year
831,250
Other Comprehensive income:
Increase in Asset Revaluation Reserve
487,500
Fair Value Reserve
500,000
Total comprehensive income
1,818,750
Additional Information for year ended 31st March 2022:
Other Income and gains includes the following:
Dividend Income $312,500
Some items of plant and equipment were disposed on 1 April 2021. Gains from Disposal of Plant and equipment (Carrying Value = 112,500; Accumulated Depreciation $50,000) is $25,000.
Gains from Revaluation of financial assets held for trading $250,000
Interest Revenue $62,500
The balance in the Asset Revaluation Reserve Account is in relation to revaluation of land.
Land was acquired for cash considerations. There was no disposal of land during the year.
Building was revalued for the first time in 2022 and revaluation loss of $125,000 was included in operating expenses. Depreciation of building for the year ended 31st March 2022 is $75,000
Financial assets held for trading were acquired for cash considerations.
The company issued new shares for cash considerations.
Included in other income and gains is an amount $250,000 related to gain from revaluation of financial assets held for trading.
Included in operating expenses are accrued expenses of $437,500 and depreciation charges for building and plant and equipment.
Dividends were paid in July 2021.
Required
Prepare a Statement of Cash Flows for Supermart Limited. for the year ended 31st March 2022.