Cash flow statement The following transactions occurred during the year ending 30 June 2021 for RST Limited.
Question:
Cash flow statement The following transactions occurred during the year ending 30 June 2021 for RST Limited.
a Borrow $100 000 from the bank with the loan due for repayment in two years (ignore interest).
b Purchase inventory on credit for $75 000.
c Paid $160 000 for an insurance policy on 30 June 2021 (the policy covers the period 1 July 2021–30 June 2022).
d Received a deposit of $20 000 from a customer to supply services in the next financial year.
e Depreciation expense for the year is $80 000.
f The company collects $10 000 from a customer who had previously purchased merchandise on credit.
g The company sells a motor vehicle for $5000 cash. The carrying amount of the motor vehicle at the time of sale is $9000.
h Issue share capital of $200 000.
Required:
Calculate the following:
1 cash flow from operations 2 cash flow from investing 3 cash flow from financing.
Step by Step Answer:
Fundamentals Of Accounting And Financial Management
ISBN: 9780170454797
8th Edition
Authors: Professor Ken Trotman, Kerry Humphreys