You are presented with the following information:

Note: Starter commenced business on 1 April 2008.

Required:

(a) Compile Starter’s cash flow statement for the year ended 31 March 2009.

(b) What does it tell the owners of Starter?

Transcribed Image Text:

Starter Profit and loss account for the year to 31 March 2009 Sales Purchases Less: Closing stock Gross profit Less: Depreciation Net profit for the year 10000 5000 1000 4000 6000 2000 4000 Balance sheet at 31 March 2009 Van 10000 Less: Depreciation 2000 Stock 1000 8000 Trade debtors 5000 Bank 12500 18500 Less: Trade creditors 2500 16000 24000 Capital 20000 Add: Net profit for the year 4000 24 000