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Answer Cash Flow Q1 Class Practice

The document provides a cash flow statement for a financial accounting class, detailing cash flows from operating, investing, and financing activities for the year. It includes calculations for cash received from customers, cash paid to suppliers and employees, and changes in cash balances. The final cash balance at the end of the year is reported as a favorable balance of 9,000 after accounting for various transactions.

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5 views

Answer Cash Flow Q1 Class Practice

The document provides a cash flow statement for a financial accounting class, detailing cash flows from operating, investing, and financing activities for the year. It includes calculations for cash received from customers, cash paid to suppliers and employees, and changes in cash balances. The final cash balance at the end of the year is reported as a favorable balance of 9,000 after accounting for various transactions.

Uploaded by

mukharivukheta
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Financial Accounting

2B (MFAC62212) /
Accounting 2B
(MACC62216) - 2024

Answer
Cash Flow Statement (IAS7)
Class Practice Question 1
Cash flow from operating activities 225 000
Cash received from customers 662 000

Cash paid to suppliers and employees (357 000)

Cash generated from operating activities 305 000

Dividends received 4 000

Finance costs (6 000)

Taxation paid (4 + 43 – 5) (42 000)

Dividends paid (8 + 32 – 4) (36 000)


Cash flow from investing activities 74 000
Additions to fixed assets: Motor (850 000 – 660 000) (190 000)

Proceeds on sale of fixed assets: Land (1 234 000 – 999 000) 235 000

Revaluation reserve 20 000

Proceeds on sale of investment (75 000 – 64 000 – 2 000) 9 000


Cash flow from financing activities (56 000)
Decrease in long-term loans (156 000 – 50 000) (106 000)

Proceeds on share issue (200 000 – 150 000) 50 000


Increase in cash and cash equivalent 243 000

Cast at the beginning of year (unfavourable balance) (234 000)

Cash at the end of year (favourable balance) 9 000


Calculation:
Customers A/C
Dr Cr
Opening balance 30 000 Bank 662 000
Sales 667 000 Closing balance 35 000
697 000 697 000
Calculation:
Inventory A/C
Dr Cr
Opening balance 29 000 Cost of sales 333 000
Creditors 331 000 Closing balance 27 000
(Inventory Purchase)
360 000 360 000
Calculation:
Suppliers A/C
Dr Cr
Bank 333 000 Opening balance 30 000
(paid to suppliers)
Closing balance 28 000 Inventory 331 000
361 000 361 000
Calculation:
Payment
(paid to suppliers and employees)

Suppliers 333 000


Expense 158 000
Loss on investment (2 000)
Depreciation (132 000)
357 000

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