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Question 6: Cash flow statement (7 marks) The 2019 accounting records of Sydney Ltd reveal the following transactions and events. Cash balance at the beginning
Question 6: Cash flow statement (7 marks) The 2019 accounting records of Sydney Ltd reveal the following transactions and events. Cash balance at the beginning of the period 16,500 Profit on sale of equipment 12,500 Income tax payments 127,500 Cash paid to suppliers 1,200,000 Cash received from customers 2,100,000 Investment in buildings 1,125,000 Proceeds from issue of shares 600,000 Depreciation expense 337,500 Interest payments 37,500 Payments of dividends to shareholders 12,500 Proceeds from sale of equipment 57,000 Payments to employees 687,500 Proceeds on borrowings from long-term debt 425,000 Required a) Prepare a Cash Flow Statement as for the year ended December 2019. (5 marks) b) Analyse the completed cash flow and advise the business on its use of operating, investing and financing cash flows. Refer to the phase/stage of operation. (2 marks)
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