Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider the following statement of cash flows for a small business, along with related comments. Select all of the comments that are true based on

Consider the following statement of cash flows for a small business, along with related comments. Select all of the comments that are true based on the data.

Cash Flow Statement for the year ended 30 June 2022:

Cash flows from Operating Activities

Cash received from customers

Cash paid to suppliers

Cash paid for utilities

Cash paid for advertising

Cash paid for interest

Cash paid for wages

Net cash flow from Operating Activities

278,000

(112,800)

(19,100)

(10,000)

(5,000)

(92,000)

39,100

Cash flows from Investing Activities

Cash paid for equipment

Cash received from sale of equipment

Net cash flow from Investing Activities

(72,000)

15,000

(57,000)

Cash flows from Financing Activities

Cash paid for drawings

Cash paid off loan

Net cash flow from Financing Activities

(32,000)

(10,000)

(42,000)

Net Cash Flow (59,900)
Cash balance at 1 July 2021 44,000
Cash balance at 30 June 2022 ($ 15,900)

The net cash flow from operating activities indicates cash flow concerns.

The business upgraded or replaced equipment.

The cash balance improved by the end of the year.

The business paid for promotional activities during the year.

The owner increased their investment in the business.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions