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The Trial Balance of Nuqa Ltd is provided below Bank Overdraft Cash Sales Cost of Goods Sold Insurance Expense Wages Expense Doubtful Debts Expense Other
The Trial Balance of Nuqa Ltd is provided below Bank Overdraft Cash Sales Cost of Goods Sold Insurance Expense Wages Expense Doubtful Debts Expense Other Expenses Accounts Payable Accounts Receivable Allowance for Doubtful Debts Inventory Accrued Wages Prepaid Insurance Plant & Equipment Accumulated Depreciation on Plant & Equipment Loan Payable Share Capital Retained Earnings Accumulated Losses 2020 2019 60,000 29,000 1,200,000 1,150,000 800,000 714,000 30,000 27,000 120,000 121,000 5,000 4,000 65,000 78,000 70,000 75,000 90,000 88,000 10,000 11,000 80,000 82,000 12,000 10,000 8,000 6,000 550,000 600,000 125,000 110,000 150,000 130,000 200,000 200,000 10,000 26,000 Additional Information Depreciation was $28,000 in 2019 and $25,000 in 2020. Loss on disposal in 2020 was $15,000. Required Calculate receipts from customers 2 marks =: Calculate payments to suppliers 3 marks : 1 mark iv 2 marks V 1 mark vi Calculate payments to employees Calculate net investing cash flows Calculate financing cash inflows Calculate net profit for 2020 Reconcile net profit with operating cash flows, using the direct method. 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. 1 marks vii 3 marks viii 2 marks
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