Chapter+19+-+2009

Chapter+19+-+2009 - Exercise 19.6 Cash flow statement for...

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Exercise 19.6 Cash flow statement for sole trader Workings: Cash receipts from customers = Sales + Begin. accounts receivable - Ending accounts receivable $17 940 = $16 800 + $4 290 - $3 150 Cash paid to suppliers for purchases = Cost of sales - Begin. inventory + Ending inventory + Begin. accounts payable - Ending accounts payable $3 900 = $5 100 - $6 000 + $6 600 + $6 150 - $7 950 Cash paid for services = Expenses - Begin. prepaid expenses + Ending prepaid expenses $6 360 = *$6 300 - $300 + $360 * (8 610 – 1 500 depreciation on equipment – 810 depreciation on vehicles) LOUIS MARTIN Cash Flow Statement for the year ended 30 June 2007 Cash flows from operating activities: Cash receipts from customers $17 940 Cash paid to suppliers and employees (10 260) Net cash used in operating activities $7 680 Cash flows from investing activities: Purchase of property, plant and equipment* (10 950) Net cash used in investing activities (10 950) Cash flows from financing activities: Proceeds from owner contribution 6 000 Proceeds from long-term borrowings 4 800 Drawings paid (6 690) Net cash used in financing activities 4 110 Net increase in cash and cash equivalents 840 Cash and cash equivalents at beginning of year ** (300) Cash and cash equivalents at end of year $540 * Purchase of equipment $ 6 300 + purchase of land $3 600 + purchase of vehicle $ 1 050. ** Assumes that the bank overdraft is part of the entity’s cash management function as per paragraph 8 of AASB 107 in this question.
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Exercise 19.7 Preparing a cash flow statement Workings: Cash Receipts from customers = Sales + Begin. accounts receivable - Ending accounts receivable $291 000 = $296 100 + $75 600 - $80 700 Cash paid to suppliers for purchases = Cost of sales - Begin. inventory + Ending inventory + Begin. accounts payable - Ending accounts payable $164 800 = $175 000 - $104 400 + $98 100 + $66 300 - $70 200 Cash paid for services = Expenses + Begin. accrued expenses - Ending accrued expenses $98 600 = *$95 600 + $41 700 - $38 700 * (104 600 – 9 000) W. YU Cash Flow Statement for the year ended 31 December 2007 Cash flows from operating activities: Cash receipts from customers $291 000 Cash paid to suppliers and employees (263 400) Net cash used in operating activities $27 600 Cash flows from investing activities: Purchase of property, plant and equipment* (54 000) Net cash used in investing activities (54 000) Cash flows from financing activities: Proceeds from long-term borrowings 30 000 Drawings paid (15 000) Net cash used in financing activities 15 000 Net decrease in cash and cash equivalents (11 400) Cash and cash equivalents at beginning of year ** 67 200 Cash and cash equivalents at end of year $55 800 2
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Exercise 19.8 Cash flow from operating activities ZINC LTD Cash Flow Statement (Extract) for the year ended 30 June 2007 Cash flows from operating activities: Cash receipts from customers $424 000 Cash paid to suppliers and employees (375 500) Cash generated from operations 48 500 Interest paid
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This note was uploaded on 07/29/2011 for the course BUS 444 taught by Professor Lynn during the Spring '11 term at Keuka.

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Chapter+19+-+2009 - Exercise 19.6 Cash flow statement for...

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