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    Cash Flow

    Uploaded by

    Nosheen Binte Karim
    1) The document provides workings and calculations for items on a cash flow statement using both the indirect and direct method. 2) Key items include net income, depreciation, gains and losses on asset sales, changes in inventory, receivables and payables, cash received from customers and paid to suppliers, and cash flows from operating, investing and financing activities. 3) The net cash flow from operating activities using the indirect method was $7,300 and using the direct method was $632. The net cash flow from investing and financing activities is also provided.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Cash Flow

    Uploaded by

    Nosheen Binte Karim
    18 views14 pages
    1) The document provides workings and calculations for items on a cash flow statement using both the indirect and direct method. 2) Key items include net income, depreciation, gains and losses on asset sales, changes in inventory, receivables and payables, cash received from customers and paid to suppliers, and cash flows from operating, investing and financing activities. 3) The net cash flow from operating activities using the indirect method was $7,300 and using the direct method was $632. The net cash flow from investing and financing activities is also provided.

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    cash flow

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    1) The document provides workings and calculations for items on a cash flow statement using both the indirect and direct method. 2) Key items include net income, depreciation, gains and losses on asset sales, changes in inventory, receivables and payables, cash received from customers and paid to suppliers, and cash flows from operating, investing and financing activities. 3) The net cash flow from operating activities using the indirect method was $7,300 and using the direct method was $632. The net cash flow from investing and financing activities is also provided.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    18 views14 pages

    Cash Flow

    Uploaded by

    Nosheen Binte Karim
    1) The document provides workings and calculations for items on a cash flow statement using both the indirect and direct method. 2) Key items include net income, depreciation, gains and losses on asset sales, changes in inventory, receivables and payables, cash received from customers and paid to suppliers, and cash flows from operating, investing and financing activities. 3) The net cash flow from operating activities using the indirect method was $7,300 and using the direct method was $632. The net cash flow from investing and financing activities is also provided.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 14

    Cash Flow Statement

    Workings:
    W 1- Net Income:
    Retained Earnings, Opening : 6,000
    Net income (b/f) : 14750
    -Dividend :
    Retained Earnings, Closing : 20750
    Workings 2: Depreciation
    Accumulated Depreciation- Equipment:
    Opening balance: 4500
    + Depreciation (B/F) 1900
    - Sale of equipment (11,000*40%) (4400)
    Closing balance 2,000
    Workings 3: Gain and loss on sale of assets
    1. Gain on sale of equity investment : 1700
    2. Equipment , Cost 11,000
    Less : A Dep (4400)
    Book value/Written Down Value/ 6,600
    Carrying amount
    Sales Price (2500)
    Loss on sale of equipment 4,100
    3. Building , cost 29750
    Less: A dep (6,000)
    WDV 23,750
    Proceed from insurance (32,000)
    Gain on disposal of Building 8,250
    Workings 4
    Equipment , Opening 20,000
    Sale (11,000)
    9000
    Closing 45,000
    Addition 36,000
    Issue of notes payable (16,000)
    Cash paid 20,000
    Workings 5: Long term notes
    Opening Balance 25,000
    Paid through share (10,000)
    Issue for equipment 16,000
    CLsoing 31,000
    Cash Flow Statement(Indirect Method)
    For the year ended December 31, 2019
    Cash Flows from Operating Activities:
    Net Income ( W 1) 14,750
    Depreciation 1900
    Amortization of patent 1250
    Gain on sale of equity investment (1700)
    Loss on sale of equipment 4,100
    Gain on disposal of building (8,250)
    Increase in Inventory (3,000)
    Increase in Accounts Receivable (3750)
    Increase in Accounts Payable 2,000
    Net Cash Flows from Operating Activities 7,300
    Cash Flow Statement(Indirect Method)
    For the year ended December 31, 2019
    Cash Flows from Investing Activities:
    Sale of equity investment 4,700
    Cash Proceeds from Building Disposal 32,000
    Sale of equipment 2,500
    Purchase of equipment (20,000)
    Net cash flow from Investing Activities 19,200
    Cash flows from Financing Activities:
    Dividend paid (5,000)
    Payment f6,or non trade notes (1000)
    Net cash flows from financing activities (6,000)
    Net Cash flows from operating, investing 20,500
    and financing activities
    Workings 1
    Cash received from customer:
    Sales 3800
    +Opening Receivable 5,00
    -Closing Receivable (780)
    Cash received 3520
    W 2: Cash paid to suppliers
    Cost of goods sold 1,200
    Inventory , closing 720
    Cost of goods available for sale 1920
    - Opening Inventory (560)
    Purchase 1360
    Opening payable 330
    1690
    -Closing payable (420)
    Paid to supplier 1270
    Cash Flow Statement(Direct Method)
    For the year ended December 31, 2019
    Cash Flows from Operating Activities:
    Cash Received from customers (W1) 3520
    Cash paid to supplier (1270)
    Salary paid (725)
    Heat, Light and Power (75)
    Misc expense (10)
    Income tax paid (808)
    Net Cash flows from operating activities 632
    Cash Flow Statement(direct Method)
    For the year ended December 31, 2019
    Cash Flows from Investing Activities:
    Sale of equity investment 40
    Purchase of land (80)
    Purchase of Building (310)
    Property tax paid (19)
    Net Cash flows from investing activities (369)
    Cash flows from Financing Activities:
    Interest paid (30)
    Net cash flows from financing activities (30)
    Net cash flows from operating, investing & financing activities 233

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