The financial year for Neverless Limited ends on 30 June 2022. During the month of June 2022,

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The financial year for Neverless Limited ends on 30 June 2022. During the month of June 2022, the company has incurred the following transactions:

(i) Sent invoices for $20 000 to customers for work carried out in June; $5000 of this was collected in June.

(ii) Received $30 000 deposit on a job that will be carried out in July 2022.

(iii) Paid accounts payable $40 000, which was outstanding on 31 May 2022.

(iv) Sold old equipment for $20 000 – the equipment originally cost $300 000 with accumulated depreciation at the time of sale of $250 000.

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 2022.

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Fundamentals Of Accounting And Financial Management

ISBN: 9780170454797

8th Edition

Authors: Professor Ken Trotman, Kerry Humphreys

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