HI5020 Online Exam On Corporate Accounting

Question 4 (10 marks)

Humorous Ltd had cash and cash equivalents at 1 July 2018 of $ 1,400,000. The transactions of Humorous Ltd for the year to 30 June 2019 are as follows:

• Borrowed $180,000 with a 6-month loan payable.
• Received $2,280,000 cash from accounts receivable.
• Sold for $240,000 cash a plant asset with a carrying amount of $160,000.
• Issued ordinary shares for $720,000 cash.
• Purchased a plant asset for $530,000; $162,000 in cash and $368,000 on loan.
• Exchanged 90,000 shares for land with a fair value of $900,000.
• Received a $200,000 dividend in cash.
• Received $40,000 interest from term deposit.
• Invested $600,000 cash on the short-term money market.
• Paid fixed-term loan principal of $480,000 and interest of $48,000.
• Cash payments for suppliers’ accounts $1,500,000.
• Dividend paid during the period $120,000.
• Insurance expense shown in the income statement is $84,000. At the end of the year the balance sheet shows prepaid insurance expense of $42,000. There was a prepaid insurance expense of $36,000 at the beginning of the year.

Required:
Prepare the statement of cash flows of Humorous Ltd for the year to 30 June 2019.