Cash Flow

This question requires an excel spreadsheet to be filled in.

Relax is a small furniture shop run by Zsa Zsa Bore in Cromer. The following transactions and balances have been extracted from the business financial records for the month of April 2020.

1. Cash at bank balance on 1 April, $19,300.
2. Sales made on credit, $22,000.
3. Sales made for cash, $5,400.
4. Depreciation for the month was calculated at $3,200.
5. Rates of $2,000 were paid to the Cromer City Council.
6. A loan of $25,000 was obtained from the Vysha Bank to purchase a new van.
7. Accounts payable of $13,600 were paid to suppliers.
8. Surplus computer equipment was sold to a neighbouring business for $2,000 cash.
9. A new van was purchased for $30,000, for which $20,000 was paid immediately to the motor vehicle dealer anda short-term note was signed promising to pay the balance in six months' time.
10. Wages of $6,700 were paid to employees.
11. Zsa Zsa withdrew $4,000 cash for personal use.
12. $16,400 was collected from credit customers.

Answer Q37(i) in the Excel spreadsheet template file provided below.

1. Click and download the followingQ37template file- an Excel spreadsheet file should download directly onto your computer.

2. Save and rename the file (Q37_IDnumber_Surname) in an easily accessible location i.e your desktop (eg file name: Q37_12345678_Smith)

3. Click 'Enable Content' at the top of the spreadsheet to edit.

5. Keepthis quiz open while you answer the questions on the spreadsheet provided.

6. Save your spreadsheet often, to prevent you from losing your work.

7.When you have finished Q37, upload your completed, saved Excel file in the dropbox below.Click the'Add' icon at the top left-hand corner of the dropbox rectangle and browse to select the file containing your answers.

Required:

(i)Prepare Classified Cash Flow Statement for the month of April 2020.

(ii)Zsa Zsa is happy because she has increased the closing balance of the Cash at Bank account. Is Zsa Zsa right to be happy about the increased balance? Explain why or why not in the text box below.