Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Q1: Financial Analysis [20 Marks] Question 2 [20 Marks] Use the following statement of cash flows for Star Pharmaceuticals to: a. prepare a summary analysis
Q1: Financial Analysis [20 Marks] Question 2 [20 Marks] Use the following statement of cash flows for Star Pharmaceuticals to: a. prepare a summary analysis of the statement of cash flows, b. analyze cash flow from operating activities, and c. analyze the cash inflows and cash outflows Note: use increase or decrease in your analysis Star Pharmaceuticals Statement of Cash Flows For the Years Ended December 31, 2019 and 2018 Question 3 [20 Marks] The October 31, 2019, bank statement of ZANACO PLC just arrived from First State Bank. To prepare the bank reconciliation, you gather the following data: The October 31 bank balance is K12, 566, in the bank statement there are two charges for NSF cheques from customers. One is for K97 and the other is for K175. The following checks were issued and cleared with the bank except for check number 801 which bounced and cheque number 818 and 820 still outstanding at October 31: Lulu collects from a few customers by EFT. The October bank statement lists a K481 EFT deposit. The bank statement includes two special deposits: K1,100, for dividend revenue, and K28 the interest revenue Lulu earned on its bank balance during October. The bank statement lists K9 for the bank service charge. On October 31, Lulu treasurer deposited K426, but this deposit does not appear on the statement. Furthermore one of Lulu's suppliers notified the treasurer that a cheque K' business issued to them bounced at the bank. The bank statement includes a K410 deduction for a check written by Essex Credit ra Lulu. Lulu notified the bank of this bank error. Lulu's Cash account shows a balance of K10, 770 on October 31 . Requirements: i. Prepare the bank reconciliation for October 31. (15 marks) ii. Record the entries called for by the reconciliation. Include an explanation for each entry
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