22. Cash Flows and Disclosure

The Trial Balance of Russia Ltd is provided below

Amounts shown in brackets ( ) are credit balances	2016	2015
Accounts Payable	(380,000)	(370,000)
Accounts Receivable	400,000	430,000
Accrued Expenses	(40,000)	(45,000)
Accumulated Depreciation on PP&E	(100,000)	(120,000)
Allowance for Doubtful Debts	(5,000)	(10,000)
Bank Overdraft	(15,000)	(155,000)
Cost of Goods Sold	500,000	550,000
Depreciation	75,000	70,000
Gain on Sale	(35,000)
Inventory	100,000	90,000
Other Expenses	160,000	140,000
Property, Plant & Equipment (PP&E)	300,000	350,000
Retained Profits (Opening balance)	(60,000)	(50,000)
Sales	(800,000)	(780,000)
Share Capital	(100,000)	(100,000)

Additional Information for 2016

• Other expenses included discount allowed of $7,000 and doubtful debts of $8,000.
• A machine was sold for $60,000.

Required

a	Prepare the Operating Section of the Cash Flow Statement for 2016.	6 marks
b	Reconcile accounting profit to cash flows from operating activities.	4.5 marks
c	Prepare the Investing Section of the Cash Flow Statement for 2016.	3 marks
d	Calculate any Financing Cash Outflows for 2016.	1.5 marks