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.

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Related Book For  book-img-for-question

Fundamentals Of Accounting And Financial Management

ISBN: 9780170454797

8th Edition

Authors: Professor Ken Trotman, Kerry Humphreys

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