Statement of Cash Flows

You are provided the following financial information for Madam Malkins Exquisite Robes, an exclusive fashion manufacturing and retailing company:

Madam Malkins Exquisite Robes

Comparative Balance Sheets

As at 30^th June

2015 2014

	$'000's		$,000's
Current Assets
Cash on Hand	48		112
Cash at Bank	-		288
Accounts Receivable (net)	240		432
Inventory	368		288
Prepaid Advertising Expense	144	800	48	1168
Non-Current Assets
Manufacturing Equipment	5088		4960
less Acc. Depreciation	1120	3968	2400	2560
Investments		672	-	. .
Total Assets		5440		3728
Current Liabilities
Overdraft Accounts Payable	320 288		512
Accrued Rent Expense	48		16
Interest Payable	144	800	320	848
Non-Current Liabilities
Loan		2400		800
Total Liabilities		3 200		1648
Net Assets		2240		2080
Equity
M. Malkin, Capital		2240		2080

(continued .........)

Madam Malkins Exquisite Robes

Income Statement

For the year ended 30^th June 2015

	$'000's
Net Sales	11776
Less: COS Gross Profit:	5856	5920
Other Revenue:
Gain from Sale of Assets	16
Dividend Revenue	32
Discount Received	64	112
		6032
Expenses:
Selling & Admin Expense	4864
Discounts Allowed	112
Depreciation Expense	320
Interest Expense	176	5472
Profit		560

Additional Information:

Manufacturing Equipment with an historic cost of $1,760,000 was sold for $176,000 cash and made the company a profit of $16,000.

M. Malkin contributed no additional capital to the business during the year.

REQUIRED:

Answer this question on the pro forma provided below.

Prepare a statement of cash flows for the year ended 30^th June 2015 in accordance with the direct method. Show all calculations on the pro forma provided.

Answer Performa with prefilled fields :

A)

Madam Malkins Exquisite Robes Statement of Cash Flows for the year ended 30 June 2015
Cash flows from operating activities:
Receipts from customers	11 856
Payments to suppliers and employees
Dividends received	32
Interest received
Interest paid	(352)
Net cash from operating activities
Cash flows from investing activities:
Purchase of Equipment
Purchase of Investments
Proceeds from sale of assets
Net cash from investing activities
Cash flows from financing activities:
Loan
Drawings	(400)
Net cash used in financing activities
Net increase/decrease in cash held
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year

*Calculations must be provided below. Failure to provide supporting calculations will result in ZERO marks awarded for this question.

Calculations: