Question
On 1 April, Lisa Brown started a new business. During April she carried out the following transactions: 1 April: Deposited 30,000 in a newly-opened business
- On 1 April, Lisa Brown started a new business. During April she carried out the following transactions:
1 April: Deposited £30,000 in a newly-opened business bank account.
2 April: Bought office equipment for £8,000 cash and inventories £10,000 on credit.
3 April: Borrowed £6,000 from a friend and deposited it in the bank.
4 April: Bought a delivery van for £10,000 cash and withdrew £500 in cash for her personal use.
5 April: Bought additional office equipment costing £11,000. The equipment bought on 4 April was given in part exchange at a value of £7,500. The balance of the purchase price for the new equipment was paid in cash.
6 April: Brown won £3,000 in a lottery and paid the amount into the business bank account. She also repaid £2,000 of the borrowings.
Required:
Draw up a cash flow statement for the business at the end of each day.
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