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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)

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)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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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