David Henry started a new business on 1 January 2021 under the name of David's Hardware. The following transactions took place during the first month of the life of the business.

1stJan David deposited $20 000 of his own savings into a bank account in the name of his new business.

2nd Jan David purchased a building costing $50 000 from which to run his business, This was financed by a mortgage loan of the same amount arranged with the business' bank.

3rd Jan David purchased furniture and fittings for the business, drawing a cheque for $12,000 from the business' bank account.

4th Jan David purchased inventory on credit for resale for $25 000.

5th Jan David needed $600 urgently for personal reasons and withdrew $600 from the business bank account.

6th Jan David sold goods for $4 000 cash, which was deposited in the business' bank account. These goods had cost the business $2 500.

7th Jan David paid $350 by cheque for a series of newspaper advertisements to appear in January.

8th Jan David sold goods for $6 000 on credit. These goods had cost the business $3 500.

9th Jan David paid $6 000 by cheque being part of the amount owing to creditors.

10th Jan David took some goods home for his personal use. The goods had cost the business $500.

11th Jan David paid $280 by cheque for telephone use in January.

12th Jan David paid $600 wages by cheque to the person David had employed earlier in the month

13th Jan David received $4 500 from debtors which was deposited in the bank account.

(E) Question 11

Prepare cash flow statement for the month ended 31 January 2018