Question
XYZ Company has asked for your assistance in preparing its cash flow statement for 20X3. Among other items, listed below are the transactions: 1.Investment by
XYZ Company has asked for your assistance in preparing its cash flow statement for 20X3. Among other items, listed below are the transactions:
1.Investment by owner: $6000
2.Payments to employees: $16 200
3.Receipt from sale of investments: $2600
4.Ending cash balance: $14 600
5.Payments for inventory: $12 000
6.Cash collected from customers: $34 800
7.Withdrawals by owner: $3600
8.Payment for purchase of warehouse: $18 400
9.Payment of interest: $1000.
Required:
A.Prepare the business' 20X3cash flow statement.
B.If the average owner's equity was $31 000, calculate the business's cash return on owner's equity.
CWhat is your evaluation if last year the business's cash return was 17.2 per cent?
Note: Show formula and calculations.
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