Extracts from the consolidated statement of profit or loss and other comprehensive income and consolidated statement of changes in equity of White Ltd Group for the year ended 30 June 2015 and its two most recent consolidated statements of financial position are set out below:
White Ltd Group
Consolidated statement of profit or loss and other comprehensive income
for the year ended 30 June 2015

$
Sales
592,500
Cost of goods sold
(269,750)
Gain on sale of subsidiary
3,600
Interest revenue
5,000
Salaries expense
(100,000)
Advertising
(38,500)
Annual leave
(9,500)
Doubtful debts
(5,750)
Depreciation of furniture
(10,000)
Depreciation of motor vehicles
(1,000)
Impairment loss - goodwill
(15,000)
Profit before tax
151,600
Income tax expense
(48,900)
Profit for the period
102,700

White Ltd Group
Consolidated statement of financial position
as at 30 June 2015

2015
2014

$
$
Current assets

Cash on hand
42,900
4,150
Accounts receivable
62,000
38,000
Allowance for doubtful debts
(9,750)
(4,000)
Inventory
132,500
103,000
Prepaid advertising
3,000
3,850
Interest receivable
5,150
2,000
Non-current assets

Land
571,000
240,000
Furniture (net)
35,000
60,000
Motor vehicles (net)
13,000
21,000
Goodwill (net)
25,500
32,000
Total assets
880,300
500,000

Current liabilities

Bank overdraft
12,000
5,000
Salaries payable
9,200
7,000
Accounts payable
81,500
72,000
Annual leave payable
1,000
2,000
Current tax liability
16,100
15,000
Dividend payable
3,000
4,000
Non-current liabilities

Loan
117,800
50,000
Debentures
100,000
-
Total liabilities
340,600
155,000
Net assets
539,700
345,000

Equity

Share capital
150,000
100,000
General reserve
10,000
-
Asset revaluation reserve
200,000
150,000
Retained Earnings
179,700
95,000
Total equities
539,700
345,000
Additional information:
a) The movement in the asset revaluation account during the year ended 30 June 2015 related to a
revaluation of a parcel of land.

b) During the year ended 30 June 2015, $10,000 was transferred from retained earnings to a
general reserve.

c) During the year ended 30 June 2015 all of Generation X Ltd’s share capital was acquired for
$58,000. At acquisition date, the balance sheet of Generation X Ltd included:

$
Cash
8,900
Accounts receivable
2,800
Inventory
7,800
Land
31,000
Motor vehicles (net)
12,000
Accounts payable
(5,000)
Income taxes payable
(1,500)
Loan payable
(6,500)

d) During the year ended 30 June 2015, all of Generation Y Ltd's share capital was sold. When
sold, the balance sheet of Generation Y Ltd included:

$
Cash
2,800
Accounts receivable
5,400
Inventory
4,800
Furniture (net)
15,000
Motor vehicles (net)
19,000
Accounts payable
(7,900)
Income taxes payable
(1,400)
Salaries payable
(4,600)
Loan payable
(3,700)

e) In regards to the revaluation of the land, the requirements of AASB 112 regarding the
recognition of deferred tax assets and liabilities can be ignored.

Required:

1. Prepare a consolidated statement of cash flows for White Ltd Group for the year ended
30 June 2015 in accordance with AASB 107 using the direct method.
Show all workings. (22.5 marks)
2. Prepare a reconciliation of net cash provided by operating activities to profit in accordance with
AASB 107. (8.5 marks)
3. Prepare a note to disclose the impact of subsidiary acquisitions and disposals in accordance with
AASB 107. (6 marks)