1. Prepare in good form a Statement of Cash Flows for the year ended 31 March 2020. (16 marks).
2. Explain why the net profit or loss for a company might differ significantly from the net cash flow for the year. Provide two examples of why these differences can occur. (4 marks)

Question 2: Statement of Cash Flows (20 marks) The following information is available from the records of Turbocharged Ltd for the year ended 31 March 2020. 1. Shares in Exhaust Ltd were sold for $8,200. The shares were valued at $7,750. 2. A mortgage of $20,000 was raised by the company from Southern Building Bank to finance the construction of a new factory. 3. Accounts Receivable at 1 April 2019 were $21,100. 4. Accounts Receivable at 31 March 2020 totalled $15,600. 5. Accounts Payable at 1 April 2019 were $23,220. 6. Accounts Payable at 31 March 2020 were $11,050. 7. Sales for the year totalled $180,000. 8. Purchases for the year totalled $118,000. 9. A customer borrowed $8,000 from the company. The full amount is due in 90 days. 10. The company bank account at 1 April 2019 had a balance of $12,100. 11. The company upgraded a metal stamping machine during the year. The old machine cost $18,000 and was sold for $12,000. The new machine was valued at $24,500. Turbocharged Ltd negotiated an instalment plan for the new machine where they would make a cash payment of 20% of the machine's value every year for five years. 12. A dividend of $24,000 was declared on 20 March 2020, of which $18,500 was paid in cash. 13. At 1 April 2019, the company owned two vans with a total net book value of $22,000. One of the vans was involved in an accident during the year and made unusable. The destroyed van was sold for scrap metal and the company received $1,200 from the sale. 14. Employees received net pay of $30,000. 15. At 1 April 2019, the company had an outstanding loan of $14,800 from Finance Company Ltd. The loan was repaid early for $14,000 cash. Later during the year, a new loan of $22,000 was received from Finance Company Ltd. The new loan is still outstanding at balance date 16. Company tax paid to IRD during the year totalled $36,000. 17. PAYE paid to IRD during the year totalled $7,800