Question 6: (from chapter 39)
The following information were extracted from the financial reports of M.Powell, a sole-trader. From the details below (Income Statement in 2018, and Balance Sheets in 2017 and 2018) you are to draft a statement of cash flow for M. Powell for the year ending 31 December 2018.

M Powell Income Sulement for the year ending 31 December 2017 2018 116.900 140.800 28.400 75.000 -24.300 24.300 95.000 -28.500 -79.100 37.800 -90.800 50.000 100 500 2.000 Les Cost of goods sold Opening inventory Add Purchase Less Closing inventory Gross Profit Add Discounts received Profit on sale of fumiture Less Expenses Blacticity Telephone Stay Gegan Bad debt Increase in allewance for doublul debt Depreciation: Fumiture 400 38.200 2.500 52.500 1.100 2.400 10.500 1.600 500 100 1.000 1.500 3.200 15.600 2.100 700 200 1.000 -17.200 -24.300 28.200 Suatement of Financial Positions 31 December 2017 2018 Non-mens fumiture cost Less depreciation to dine 28.000 8.000 20.000 21.000 -5.000 16.000 Current Inventory Accounts receivable less allowance Bank 24.300 5.100 4.000 28.500 4.100 9.000 Total Asses 33.400 53.400 41.600 57.600 Cument Liabilities Accounts payable 2.700 3.200 7.000 4.000 Nen-curasolina Lean from Abacus Total liabilities Natas -9.700 1 -7.200 50.400 43.700 Capital Opening balance b/a Add Nero Add capital introduced Less Drawings Total Capital 15.800 21.000 6.900 43.700 28.200 21.500 43.700 50.400 Accounts receivable 2017 5,700 - allowance 600. Accounts receivable 2018 4,900 - allowance 800. Note: Some fumiture were sold for 5,000 during 2013. No new fumiture was purchased during the year