I need help with Statement of Cash flows accounting assignment

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Accounting 211 ASSIGNMENT 2 ANSWER BOOKLET Semester 1 2020 ASSIGNMENT 2 ANSWER BOOKLET (13 pages) Note: This assignment is due online by 6 pm* on Friday, 20th March 2020. *Remember not to submit at precisely 6 pm It is your responsibility to ensure the Assignment 2 Answer Booklet is successfully submitted on time, and the format is not changed. Ensure it is downloadable and readable by the ACCTG 211 markers. QUESTION 1 All the questions below relate to the SCF and relevant notes. Note: Cash outflows must be shown in brackets. Auckland Airport Air New Zealand On what page is the SCF? Determine the ‘cash generated from operations’ amount. State the income tax paid $ amount. State the cash and cash equivalents at the end of the year State the ‘cash’ component amount of the Cash and Cash equivalents amount at the end of the year What method does the entity use for CFOA in the SCF? How was interest expense paid classified in the SCF? How was the interest income classified in the SCF? How was dividends paid classified in the SCF? Net cash flow from/(applied to) investing activities was? State the repayment of borrowings amount. State the dollar amount for the depreciation and amortisation non-cash item adjustment in the ‘PAT to CFOA’ reconciliation QUESTION 2 (a maximum of one page) QUESTION 3 (i) Reconstruct the following Bovine Ltd general ledger accounts: Long term borrowings $ $ Share Capital $ $ Retained earnings $ $ Dividends payable $ $ Interest expense payable $ $ Question 3(i) continued: Income tax payable $ $ Plant and Equipment $ $ Accumulated depreciation $ $ General journal entry to recognise the sale of the equipment: Dr Cr Accounts receivable GST inclusive GST exclusive GST GST inclusive Question 3(i) continued: Accounts payable GST exclusive GST GST inclusive GST inclusive Inventory $ $ GST payable $ $ Question 3 continued: (ii) Bovine Ltd Statement of Cash Flows for the year ended 31 March 2019 Cash flows from operating activities: Cash generated from operations Net cash flow (used in)/from operating activities Cash flows from investing activities: Net cash flow (used in)/from investing activities Cash flows from financing activities Net cash flow (used in)/from financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period $ Question 3 (ii) continued: Bovine Ltd Reconciliation of profit after tax to net cash flow from operating activities Profit Transactions of a non-cash nature Deferrals/accruals of past or future operating cash receipts/payments Reverse items of income/expense included in profit but are CFIA/CFFA Other Net cash flow (used in)/from operating activities $ Question 3 continued: (iii) Bovine Ltd Statement of Cash Flows for the year ended 31 March 2019 Cash flows from operating activities: Transactions of a non-cash nature Deferrals/accruals of past or future operating cash receipts/payments Reverse items of income/expense included in profit but are CFIA/CFFA Reverse items of income/expense included in profit to be shown separately as CFOA Cash generated from operations Net cash flow (used in)/from operating activities Question 3 (iii) continued: Cash flows from investing activities: Net cash flow (used in)/from investing activities Cash flows from financing activities Net cash flow (used in)/from financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period $ QUESTION 4 Scenario 1 Scenario 2 Short term investment (52 days) $10 000 $120 000 Short term investment (100 days) $ 34 000 - Foreign bank account (no significant risk of change in value) - 7 000 Short term investment (120 days) - 40 000 Redeemable preference shares (redeemable in two months) - 25 000 Cash at bank 18 000 3 000 Petty cash 123 - Bank overdraft 5 780 - Cash and cash equivalents = $ $ QUESTION 5 Partial Statement of Cash Flows for Baa Ltd for the year ended 31 March 2020 Cash flows from operating activities - Direct method: Items classified as CFOA Alternative classification chosen Cash generated from operations Net cash (used in)/from operating activities $ $ Cash flows from investing activities Net cash (used in)/from investing activities $ $ Cash flows from financing activities Net cash (used in)/from financing activities $ $ Question 5 continued: Partial Statement of Cash Flows for Baa Ltd for the year ended 31 March 2020 Cash flows from operating activities – Indirect method: Items classified as CFOA Alternative classification chosen PBT Deferrals/Accruals: Items of income/expense included in PBT to be shown separately as CFOA: Items of income/expense included in PBT to be classified as CFIA/CFFA: Cash generated from operations Net cash (used in)/from operating activities $ $ Cash flows from investing activities Net cash (used in)/from investing activities $ $ Cash flows from financing activities Net cash (used in)/from financing activities $ $ QUESTION 6 Winton Ltd Statement of Cash Flows for the year ended 31 March 2020 Cash flows from operating activities: Cash generated from operations Accounts receivable GST inclusive GST exclusive GST GST inclusive Allow for DD $ $ GST payable $ $ QUESTION 7 The following are ALL cash inflows and cash outflows relating to the current accounting period: Highlight the applicable section/s of the SCF that would/could be affected. Receipt of interest income CFOA CFIA CFFA Dividends received CFOA CFIA CFFA Payment of salaries and wages CFOA CFIA CFFA Payment of interest expense CFOA CFIA CFFA Payment of dividends to shareholders CFOA CFIA CFFA Cash sales CFOA CFIA CFFA Acquisition of an intangible asset CFOA CFIA CFFA Payment to suppliers for inventory delivered last month CFOA CFIA CFFA Receipt of cash relating to last month’s credit sales CFOA CFIA CFFA Prepayment of rent for three years CFOA CFIA CFFA ______________________________________________________ 6

Accounting 211 ASSIGNMENT 2 Semester 1 2020 acctg 211 financial accounting Reference: Assignment 2 – Topics 1 and 2 Note: (a) You must use the Assignment 2 Answer Booklet document provided on Canvas to submit your answers online. Do not change the format of the answer booklet when submitting it online. At times, more space has been provided than is necessary to answer a question. (b) The questions are from past test and exam papers; these questions may have been adapted, and the requirements may have been changed. (c) This assignment is due by 6 pm* on Friday, 20 March 2020. (d) This assignment counts for 4% of the final grade for the course. (e) If you have problems with this assignment, then please use Piazza to discuss it with other students and teaching staff. (f) It is your responsibility to ensure that your answer booklet word document is submitted successfully on time, it is downloadable and readable by the ACCTG 211 markers * Do not submit at precisely 6 pm; Canvas will recognise it as a late submission, i.e., your assignment will not be accepted for marking. QUESTION 1 The 2019 Annual Reports/Financial Statements for both Air NZ and Auckland Airport are provided on Canvas/Modules/Assignments 1 to 5. Answer the questions in the Answer Booklet for both Air NZ and Auckland Airport. All questions relate to 2019. QUESTION 2 (Topic 1) The development and regulation of accounting around the world differ; four significant influences help explain the differences. Explain the four significant influences and use New Zealand and Germany as examples in your explanation. QUESTION 3 (adapted from the Semester 2 2019 test) The following information has been extracted from the financial records of Bovine Ltd: 31/3/2019 31/3/2018 Cash $500 $275 Accounts receivable 4 991 5 152 Inventory 7 000 7 240 Plant and equipment - at cost 45 025 44 000 Accumulated Depreciation 16 000 13 500 Bank overdraft - 200 Accounts payable 7 452 6 992 GST payable 50 381 Interest expense payable 10 15 Dividends payable 150 - Income tax payable 40 30 Long-term borrowings 3 000 4 000 Share capital 11 864 9 799 Retained earnings 18 950 21 750 Sales 60 000 Cost of goods sold 40 000 Operating expenses 15 000 Interest expense 185 Depreciation expense 3 300 Loss on sale of P and E 501 Tax expense 400 Profit after tax 614 Additional information: 1. Bovine Ltd uses the direct method of reporting cash flows from operating activities. 2. The entity classifies dividends paid and interest paid as operating cash outflows. 3. There were no new long-term borrowings during the year. 4. An item of equipment was sold for $2 000 cash. 5. An item of equipment was purchased for $826 with an issue of shares. 6. The NZ GST rate is 15%. Required: (i) Reconstruct the named Bovine Ltd general ledger accounts in the Answer Booklet. (ii) Prepare a Statement of Cash Flows for Bovine Ltd, in accordance with NZ IAS 7 Statement of Cash Flows, for the year ended 31 March 2019. (iii) Assume Bovine Ltd uses the indirect method of reporting cash flows from operating activities. Prepare the Statement of Cash Flows for Bovine Ltd, in accordance with NZ IAS 7 Statement of Cash Flows, for the year ended 31 March 2019. QUESTION 4 Quack Ltd requires you to determine, for the two scenarios in the Answer Booklet, the ‘cash and cash equivalents’ amount to include in its Statement of Cash Flows. QUESTION 5 NZ IAS 7 Statement of Cash Flows states that cash flows from interest and dividends received and paid shall be disclosed separately and allows choice as to the classification of these cash flows. The junior accountant, for Baa Ltd, does not fully understand the effects of this choice of classification on the statement of cash flows (SCF) and notes. You have been requested to demonstrate the practical differences by completing the two partial SCF in the Answer Booklet. Baa Ltd provided you with five general ledger accounts: Interest income receivable 1/4/19 Opening balance 3 500 Cash 14 750 Interest income 16 000 31/3/20 Closing balance 4 750 19 500 19 500 Dividend income receivable 1/4/19 Opening balance - Cash 2 500 Dividend income 3 000 31/3/20 Closing balance 500 3 000 3 000 Interest expense payable Cash 40 000 1/4/19 Opening balance 4 000 31/3/20 Closing balance - Interest expense 36 000 40 000 40 000 Dividends payable Cash 35 000 1/4/19 Opening balance 45 000 31/3/20 Closing balance 260 000 Dividend declared 250 000 295 000 295 000 Retained earnings Dividends declared 250 000 1/4/19 Opening balance 110 000 31/3/20 Closing balance 716 000 PAT 856 000 966 000 966 000 Question 5 continued: Required: Complete the two partial Statement of Cash Flows (SCF) for Baa Ltd, in accordance with NZ IAS 7 Statement of Cash Flows, for the year ended 31 March 2020. In the first partial Statement of Cash Flows, the direct method is used for reporting cash flows from operating activities. In the second partial Statement of Cash Flows, the indirect method is used for reporting cash flows from operating activities. Note: You will not be able to complete the SCF’s because you have not been provided with enough information. QUESTION 6 Winton Ltd is unsure as to how to calculate the net GST cash flow to include in its Statement of Cash Flows for the year ended 31 March 2020. The NZ GST rate is 15%. To help your client, Winton Ltd, you requested and obtained the following account balances: 31/03/2019 31/03/2020 Cash $8 $12 Accounts receivables 235 282 Allowance for doubtful debts 7 6 Inventory 156 160 Bank overdraft - 10 Accounts payable 240 330 GST payable 60 40 Sales - credit 500 Sales - cash 100 COGS 300 Doubtful debts expense 4 Required: (i) Calculate the net GST cash flow for Winton Ltd for the year ended 31 March 2020, and complete the cash flows from operating activities (CFOA) section to arrive at the ‘cash generated from operations’ amount. Winton Ltd uses the direct method for CFOA. (ii) Reconstruct the Winton Ltd general ledger accounts in the Answer Booklet. QUESTION 7 Complete the table in the Answer Booklet. _____________________________________________ 4

Accounting 211 ASSIGNMENT 2 ANSWER BOOKLET Semester 1 2020 ASSIGNMENT 2 ANSWER BOOKLET (13 pages) Note: This assignment is due online by 6 pm* on Friday, 20th March 2020. *Remember not to submit at precisely 6 pm It is your responsibility to ensure the Assignment 2 Answer Booklet is successfully submitted on time, and the format is not changed. Ensure it is downloadable and readable by the ACCTG 211 markers. QUESTION 1 All the questions below relate to the SCF and relevant notes. Note: Cash outflows must be shown in brackets. Auckland Airport Air New Zealand On what page is the SCF? Determine the ‘cash generated from operations’ amount. State the income tax paid $ amount. State the cash and cash equivalents at the end of the year State the ‘cash’ component amount of the Cash and Cash equivalents amount at the end of the year What method does the entity use for CFOA in the SCF? How was interest expense paid classified in the SCF? How was the interest income classified in the SCF? How was dividends paid classified in the SCF? Net cash flow from/(applied to) investing activities was? State the repayment of borrowings amount. State the dollar amount for the depreciation and amortisation non-cash item adjustment in the ‘PAT to CFOA’ reconciliation QUESTION 2 (a maximum of one page) QUESTION 3 (i) Reconstruct the following Bovine Ltd general ledger accounts: Long term borrowings $ $ Share Capital $ $ Retained earnings $ $ Dividends payable $ $ Interest expense payable $ $ Question 3(i) continued: Income tax payable $ $ Plant and Equipment $ $ Accumulated depreciation $ $ General journal entry to recognise the sale of the equipment: Dr Cr Accounts receivable GST inclusive GST exclusive GST GST inclusive Question 3(i) continued: Accounts payable GST exclusive GST GST inclusive GST inclusive Inventory $ $ GST payable $ $ Question 3 continued: (ii) Bovine Ltd Statement of Cash Flows for the year ended 31 March 2019 Cash flows from operating activities: Cash generated from operations Net cash flow (used in)/from operating activities Cash flows from investing activities: Net cash flow (used in)/from investing activities Cash flows from financing activities Net cash flow (used in)/from financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period $ Question 3 (ii) continued: Bovine Ltd Reconciliation of profit after tax to net cash flow from operating activities Profit Transactions of a non-cash nature Deferrals/accruals of past or future operating cash receipts/payments Reverse items of income/expense included in profit but are CFIA/CFFA Other Net cash flow (used in)/from operating activities $ Question 3 continued: (iii) Bovine Ltd Statement of Cash Flows for the year ended 31 March 2019 Cash flows from operating activities: Transactions of a non-cash nature Deferrals/accruals of past or future operating cash receipts/payments Reverse items of income/expense included in profit but are CFIA/CFFA Reverse items of income/expense included in profit to be shown separately as CFOA Cash generated from operations Net cash flow (used in)/from operating activities Question 3 (iii) continued: Cash flows from investing activities: Net cash flow (used in)/from investing activities Cash flows from financing activities Net cash flow (used in)/from financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period $ QUESTION 4 Scenario 1 Scenario 2 Short term investment (52 days) $10 000 $120 000 Short term investment (100 days) $ 34 000 - Foreign bank account (no significant risk of change in value) - 7 000 Short term investment (120 days) - 40 000 Redeemable preference shares (redeemable in two months) - 25 000 Cash at bank 18 000 3 000 Petty cash 123 - Bank overdraft 5 780 - Cash and cash equivalents = $ $ QUESTION 5 Partial Statement of Cash Flows for Baa Ltd for the year ended 31 March 2020 Cash flows from operating activities - Direct method: Items classified as CFOA Alternative classification chosen Cash generated from operations Net cash (used in)/from operating activities $ $ Cash flows from investing activities Net cash (used in)/from investing activities $ $ Cash flows from financing activities Net cash (used in)/from financing activities $ $ Question 5 continued: Partial Statement of Cash Flows for Baa Ltd for the year ended 31 March 2020 Cash flows from operating activities – Indirect method: Items classified as CFOA Alternative classification chosen PBT Deferrals/Accruals: Items of income/expense included in PBT to be shown separately as CFOA: Items of income/expense included in PBT to be classified as CFIA/CFFA: Cash generated from operations Net cash (used in)/from operating activities $ $ Cash flows from investing activities Net cash (used in)/from investing activities $ $ Cash flows from financing activities Net cash (used in)/from financing activities $ $ QUESTION 6 Winton Ltd Statement of Cash Flows for the year ended 31 March 2020 Cash flows from operating activities: Cash generated from operations Accounts receivable GST inclusive GST exclusive GST GST inclusive Allow for DD $ $ GST payable $ $ QUESTION 7 The following are ALL cash inflows and cash outflows relating to the current accounting period: Highlight the applicable section/s of the SCF that would/could be affected. Receipt of interest income CFOA CFIA CFFA Dividends received CFOA CFIA CFFA Payment of salaries and wages CFOA CFIA CFFA Payment of interest expense CFOA CFIA CFFA Payment of dividends to shareholders CFOA CFIA CFFA Cash sales CFOA CFIA CFFA Acquisition of an intangible asset CFOA CFIA CFFA Payment to suppliers for inventory delivered last month CFOA CFIA CFFA Receipt of cash relating to last month’s credit sales CFOA CFIA CFFA Prepayment of rent for three years CFOA CFIA CFFA ______________________________________________________ 6

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