The financial year for Neverless Limited ends on 30 June 2016. During the month of June 2016,
Question:
The financial year for Neverless Limited ends on 30 June 2016. During the month of June 2016, the company has incurred the following transactions:
1. Sent invoices for $20 000 to customers for work carried out in June; $5000 of this was collected in June.
2. Received $30 000 deposit on a job that will be carried out in July 2016.
3. Paid accounts payable $40 000, which was outstanding on 31 May 2016.
4. Sold old equipment for $20 000 - the equipment originally cost $300000 with accumulated depreciation at the time of sale of $250 000.
5. Declared dividends of $80 000 to be paid next financial year.
Indicate the effect (increase/decrease/no change) of each transaction on the company's cash flow from operating activities, investing activities and financing activities for the year ended 30 June 2016.
Step by Step Answer:
Financial Accounting An Integrated Approach
ISBN: 9780170349680
6th Edition
Authors: Ken Trotman, Michael Gibbins, Elizabeth Carson