Question
Question 4: A company had a $51 000 net loss for 2019. A dividend of $19 000 was paid during the year and depreciation expense
Question 4: A company had a $51 000 net loss for 2019. A dividend of $19 000 was paid during the year and depreciation expense for 2019 was $14 000. The balance sheet records the following working capital accounts as below. Calculate whether this company generated any cash from its operations during 2019. (10 Marks)
|
| 1 January 2019 ($) | 31 December 2019 ($) |
| Cash | 12500 | 10500 |
| Inventory | 15000 | 9000 |
| Prepayments | 5000 | 2000 |
| Accounts Receivable | 11000 | 15000 |
| Accounts Payable | 10000 | 11000 |
| Accruals | 7000 | 8000 |
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Accounting Tools For Business Decision Making
Authors: Paul D. Kimmel
3rd Edition
0470377852, 978-0470377857
