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Cash Flow

Zara Company's balance sheet for June 30, 2024, shows total assets of Rs. 252,000,000, a decrease from Rs. 274,000,000 in 2023, with notable changes in cash and accounts receivable. The income statement for the year ended June 30, 2024, reports net income of Rs. 20,000,000 from sales of Rs. 400,000,000 after accounting for various expenses. The company paid cash dividends of Rs. 30,000,000 during 2024.

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Mazhar Ali Gujjar
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178 views1 page

Cash Flow

Zara Company's balance sheet for June 30, 2024, shows total assets of Rs. 252,000,000, a decrease from Rs. 274,000,000 in 2023, with notable changes in cash and accounts receivable. The income statement for the year ended June 30, 2024, reports net income of Rs. 20,000,000 from sales of Rs. 400,000,000 after accounting for various expenses. The company paid cash dividends of Rs. 30,000,000 during 2024.

Uploaded by

Mazhar Ali Gujjar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Q.

Zara Company’s comparative balance sheet for June 30, 2024, and income statement for
the year ended June 30, 2024, follows:
ZARA COMPANY
Balance Sheet as at June 30, 2014 2024 2023
Rs. 000s Rs. 000s
Assets
Cash 30,000 15,000
Accounts Receivable, net 75,000 87,000
Inventory 90,000 105,000
Prepaid Expenses 2,000 2,000
Land 25,000 25,000
Building and Equipment 122,000 120,000
Accumulated depreciation (92,000) (80,000)
Total Assets 252,000 274,000
Liabilities and Stockholders' equity
Accounts payable 25,500 32,000
Income taxes payable Accrued liabilities 2,500 3,000
Accrued liabilities 5,000 5,000
Bonds payable (current maturity) 20,000 5,000
Bonds payable 70,000 90,000
Common stock 85,000 85,000
Retained earnings 44,000 54,000
Total liabilities and stockholders' equity 252,000 274,000
ZARA COMPANY
Income statement for the year ended on June 30, 2024 2024
Rs. 000s
Sales 400,000
Less Expenses:
Cost of goods sold (includes depreciation of Rs.5,000) 280,000
Selling & Admn. Exp. (includes depreciation of Rs.7,000) 78,000
Interest expenses 8,000 366,000
Income before taxes 34,000
Income tax expense 14,000
Net income 20,000
Note: Cash dividends of Rs.30,000,000 were paid during
2024.
Required:
a) Prepare the statement of cash flows for 2024.
b) Comment on the statement of cash flows.

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