QUESTION 3 - 8 marks Using the relevant information from pages 4 and 5 of the Information Booklet 4 Jim has made a start on completing a cash flow and already worked out that the netfash from operations is $174,095. REQUIRED: A. Complete the cash flow statement to work out Investing and Financing activities and the overall change in cash. Question 3 Part A (Enter answers here) Energised Athletes Make the Leap STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30 Cash Flows from Operating Activities 174,095 Cash Flows from Investing Activities Cash Flows from Financing Activities Net increase / decrease in cash held Cash at the beginning of the year Cash at the end of the year Paul and Jim have been reviewing their performance but are struggling to really understand what position their business is in. They have provided you with the following reports and asked you to provide them some advice. Energised Athletes Make the Leap COMPARATIVE BALANCE SHEETS AS AT JUNE 30 Opening Balances Closing Balance Current Assets Petty Cash 150 150 Bank 1,204 62,199 Accounts Receivable 21,540 33,682 Less Allowance 4,220 17,320 7,920 25,762 Inventory 37,800 35,860 Prepaid Expenses 4,680 8,870 70,875 49,577 Non Current Assets Equipment & Fixtures less Acc. Depreciation Buildings less Acc. Depreciation Vehicles less Acc. Depreciation land 81,000 10.125 175,000 46 500 51,000 15,726 81,000 31,423 175,000 139,500 85,000 29,868 128,500 35,500 35,274 130,000 425,803 55,132 130,000 403,050 Total Assets Current Liabilities Accounts Payable Accrued Expenses GST Lability 12,600 5,170 2.750 16,320 4,970 5.750 20,520 27,040 Non Current Liabilities Bank Loan Total Liabilities Net Assets 351,000 371.520 54,283 229,000 256,040 147,010 Equity Capital-Paul Volt Capital - Jim Nastique 54,283 84,010 63,000 During the year Jim contributed $70,000 capital (in cash) to become a partner. Energised Athletes Make the Leap INCOME STATEMENT FOR THE YEAR ENDED JUNE 30 Net Sales Discount Allowed COGS Other Revenue: Training Fees 256 290 2600 122,350 131,340 95,300 Expenses: Selling Expenses 32,564 Miscellaneous Expenses 6,729 Doubtful Debts Expense 3800 Depreciation Expenses 128,440 Financial Expense (Interest) 5,280 176,813 Profit 49,827 As part of the review of their business Jim has been looking into what they are owed by various customers and how many debts are outstanding. After chatting with another colleague in the industry Jim has also been able to determine how likely customers are to pay back the amounts owed, depending on how long their account has been overdue. Jim has been able to summarise the information in the table below. Age of Customer Debt Amounts owed (including GST) Estimate of % that will not be collected. Not yet overdue 15,620.00 2% 1-30 days overdue 10,340.00 10% 35 % 31-60 days overdue 61 + days overdue 3,960.00 3,762.00 70% 33,682.00 Jim has also been looking at another way to assess doubtful debts and has worked out that 90% of the businesses net sales are on credit and of these around 2% are likely to go bad