FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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For the year ended 30 June 2023, the following information is available for Ronny Ltd:
Land
Buildings
Accumulated depreciation-buildings
Machinery
Accumulated depreciation-machinery
2023
240,000
1,200,000
(200,000)
45,000
(13,100)
2022
100,000
500,000
(150,000)
38,000
(7,200)
Additional information from accounting records:
Land was revalued at the end of the year. This resulted in an increase in land of $40,000.
Buildings were purchased during the year. This was paid for by issuing $200,000 worth of shares and the balance paid in cash.
Machinery with a cost of $8,000 and a carrying amount of $6,400 was sold for cash during the year. A gain on sale of $4,000 was
recorded. New machinery was purchased for cash.
The tax rate is 30%
QUESTION: Calculate net cash used in investing activities and the Present the cash flows in the correct format.
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Transcribed Image Text:For the year ended 30 June 2023, the following information is available for Ronny Ltd: Land Buildings Accumulated depreciation-buildings Machinery Accumulated depreciation-machinery 2023 240,000 1,200,000 (200,000) 45,000 (13,100) 2022 100,000 500,000 (150,000) 38,000 (7,200) Additional information from accounting records: Land was revalued at the end of the year. This resulted in an increase in land of $40,000. Buildings were purchased during the year. This was paid for by issuing $200,000 worth of shares and the balance paid in cash. Machinery with a cost of $8,000 and a carrying amount of $6,400 was sold for cash during the year. A gain on sale of $4,000 was recorded. New machinery was purchased for cash. The tax rate is 30% QUESTION: Calculate net cash used in investing activities and the Present the cash flows in the correct format.
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