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The cash flows shown below were extracted from the accounts of Jason Taylor, a music shop owner. Repayment of loan $390 000 Sale of property
The cash flows shown below were extracted from the accounts of Jason Taylor, a music shop owner.
Repayment of loan
$390 000
Sale of property
390 000
Interest received
1 560
Payment to employees
78 000
Receipts from customers
273 000
Expenses paid
23 400
Computer equipment purchase
23 400
GST paid
780
Payments to suppliers
156 000
Income taxes paid
3 120
Beginning cash balance
7 800
A. Prepare statement of cash flows using the direct method.
B. Outline some cash flow warning signals.
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