Margaret's Business Transactions;

1. Prepare a fully classified Cash Flow Statement for the year ending 31 December 2020. (Note:some items listed are not cash flow items)

2. Comment on Margarets cash flows,in regard to;

Operating

Investing

Financing activities

the ending cash bank balance.

3. Make 3 recommendations to Margaret in regard to her cash flows and cash position.

\begin{tabular}{lrr} Buildings (purchased 2 years ago) & $ & 220,000 \\ Capital,start 2 years ago & $ & 78,000 \\ Cash invested by Owners Inheritance & $ & 35,000 \\ Cash Drawings & $ & 90,000 \\ Cash Receipts from Customers & $ & 785,000 \\ Cash-Bank balance,start of year & $ & (6,000) \\ Commission received in cash & $ & 19,000 \\ Depreciation-Building & $ & 24,000 \\ Depreciation-Equipment & $ & 4,000 \\ Equipment (purchased 2 years ago) & $ & 50,500 \\ Interest paid & $ & 35,000 \\ Interest received in cash & $ & 14,000 \\ Loan (6 months ago) obtained fromASB & $ & 10,000 \\ Loan (6 months ago) repaidto ASB & $ & 10,000 \\ Mortgage obtainedfromBNZ & $ & 65,000 \\ \hline Mortgage repaid (principal) & $ & 165,000 \\ \hline Payments to Suppliers & $ & 373,000 \\ Purchase of New Buildings for cash (currentyear) & $ & 280,000 \\ Purchase of shares in Spark for cash & $ & 26,000 \\ Sales of Power Supply Ltd shares for cash & $ & 131,000 \\ Sale of Old Buildings for cash & $ & 96,000 \\ Tax paid & $ & 123,000 \\ Term Deposit (opened6 months ago) & $ & 20,000 \\ \hline Wages paid & $ & 80,000 \end{tabular}