The following information relates to Paid Ltd,

Balance sheet balances at           31 March 2013        31 March 2014

                                                  $                            $

Capital                                        205 000                  182 500

Accumulated profits                     18 500                    7 000

Long  term loan from BB Bank     20 000                    25 000

Land & buildings @ cost              155 000                  145 000

Machinery & equipment @

Carrying amount                         79 500                    74 500

Inventory                                    22 500                    18 500

Debtors                                      31000                     26 500

Bank                                           2 500 CR                1 500DR

Creditors                                     15 000                    13 500

Current portion of long term

Loan                                           5 000                      15 000

Income tax payable                     4 500                      6 500

Profit distribution payable             16 000                    14 000

Accrued expenses- wages           3 500                      2 500

Prepaid expenses-insurance        2 000                      -

 

Additional

Depreciation on machinery and equipment to the amount of $13 500 was to taken into account.

During the year machinery and equipment with a carrying amount of $7 500 was sold for cash at a loss of $2 500

Land & buildings sold for cash during the year $15 000

All additions to property plant and equipment were paid

The provision for income tax for the year ended 31 March 2014 amounted          $20 850

Profit for the year ended 31 March 2014 amounted to $18 000

According to the income statement of Paid Ltd  for the year ended 31 March 2014 the cost of sales and gross profit amounted to  $54 500 and $243 500 respectively. The interest expense on long term loan was shown as $4 250.

 

Required

a. Show the calculations for the cash receipts from customers if the amount is $291 500 for 2012

1. b. Cash paid to suppliers and employees if the amount is $228 945 for 2012
2. 
   
3. c. Prepare the cash flow statement using the direct method and the respective reconciliation of profit before taxation with cash generated from operations.