Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Mei-ling has prepared the statement of financial position and income statement of Matcha & Coffee Creations Inc. for the first year of operations, but does
Mei-ling has prepared the statement of financial position and income statement of Matcha & Coffee Creations Inc. for the first year of operations, but does not understand how to prepare the cash flow statement. The income statement and statement of financial position appear below. Recall that the company started operations on November 1, 2018, so all of the opening balances are zero. Additional information: The company bought kitchen equipment (a commercial oven) for NT$29,000 on November 1, 2018, and signed a NT$12,000 note payable to help pay for it. The terms provide for semiannual fixed principal payments of NT$2,000 on May 1 and November 1 of each year, plus interest of 5%. All other furniture, fixture, and equipment were purchased during the year for cash. Recall that the company originally issued 25,930 ordinary shares for NT$25,930, of which 750 shares were repurchased from the lawyer for NT$500. Recall that the company declared a semiannual dividend to the preference shareholders on April 30, and the dividend was paid on June 1. The second semiannual dividend was declared to the preference shareholders on October 31, to be paid on December 1. Prepaid expenses relate only to operating expenses. Instructions How much net cash flow can Matcha & Coffee Creations Inc. provide by its operating activities for the year ended October 31, 2019? How much cash does Matcha & Coffee Creations Inc. receive from customers? How much cash does Matcha & Coffee Creations Inc. pay to suppliers? How much net cash flow can Matcha & Coffee Creations Inc. provide by its investing activities for the year ended October 31, 2019? How much net cash flow can Matcha & Coffee Creations Inc. provide by its financing activities for the year ended October 31, 2019? The statement of financial position and income statement of Matcha & Coffee Creations Inc. for its first year of operations, the year ended October 31, 2019, follows
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started