The Trial Balance of Nuqa Ltd is provided below

2020 2019

Bank Overdraft 60,000

Cash 29,000 0

Sales 1,200,000 1,150,000

Cost of Goods Sold 800,000 714,000

Insurance Expense 30,000 27,000

Wages Expense 120,000 121,000

Doubtful Debts Expense 5,000 4,000

Other Expenses 65,000 78,000

Accounts Payable 70,000 75,000

Accounts Receivable 90,000 88,000

Allowance for Doubtful Debts 10,000 11,000

Inventory 80,000 82,000

Accrued Wages 12,000 10,000

Prepaid Insurance 8,000 6,000

Plant & Equipment 550,000 600,000

Accumulated Dep. on Plant & Equip. 125,000 110,000

Loan Payable 150,000 130,000

Share Capital 200,000 200,000

Retained Earnings 10,000 0

Accumulated Losses 0 26,000

Additional Information

Depreciation was $28,000 in 2019 and $25,000 in 2020. Loss on disposal in 2020 was $15,000.

i)Calculate receipts from customers

ii)Calculate payments to suppliers

iii)Calculate payments to employees

iv)Calculate net investing cash flows

v)Calculate financing cash inflows

vi)Calculate net profit for 2020

vii)Reconcile net profit with operating cash flows, using the direct method.

viii)Use your answer for (vii) to suggest two ways in which the company could improve its operating cash flows by managing current assets and liabilities.