Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Following data for the financial year, 2022 has been extracted from the books of Firefox Ltd, a sole proprietor dealing in Melbourne. Assume that all

Following data for the financial year, 2022 has been extracted from the books of Firefox Ltd, a sole proprietor dealing in Melbourne. Assume that all purchases for stocks and relevant expenses fully match the sales revenues for the period and cash has either been received or paid where applicable.

Sales (All in cash)

180,000

General and administration expenses

42,000

Interest expense

3,000

Loan repayment (Principal)

5,000

Rent

15,000

Acquisition of computer

2,500

Receipts from selling his government bonds

5,000

Income Tax paid

1,000

Purchase (all in cash)

105,000

Drawings by Owner

12,000

Other information:

The cash balance of the business at the beginning of the financial year was $22,000.

Required:

Prepare the Cash flow statement for 2022 (showing the classifications of cash flows) and the Ending Cash Balance.

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

Accounting Equations & Answers

Authors: Barcharts, BarCharts Inc

1st Edition

1423218248, 9781423218241

More Books

Students also viewed these Accounting questions