Task 6: GST and Cash Flow Statement(6 marks)

Metropolitan Flower Shop is also managed by you (acting as Peter) that operate in North Sydney. Peter is forecasting the transactions during the next financial year will affect its cash flow. (All ATO dues and ATO credits are expected to be settled during the year)

$

Cash sales, 10% GST not included

Credit sales for year, including 10% GST

Cash receipts in respect of credit sales budget year

Cash receipts in respect of credit sales previous year

Cash purchases, 10% GST not included

GST payable to ATO

GST input credit from ATO

Wages

Other payments, including 10% GST

90 000

186 000

150 000

11 000

80 000

10 000

20 000

110 000

44 000

Prepare budgeted cash flow statement assuming that the opening bank balance was $30,200.

Workings:

Cash Receipts:

$

$

Cash sales

GST receipts on cash sales

Credit sales - budget year

Credit sales - previous year

Total Cash receipts

Cash Payments:

Purchases

GST payments on cash purchases

Wages

Net GST payable to ATO

Other payments

Total Cash Payments:

Cash surplus/(deficit)

Opening bank balance

Closing bank balance