Question
XYZ Inc. is preparing its cash flow statement under the direct method and has provided this information: Information Amount Net credit sales 13000000 Accounts receivable,
XYZ Inc. is preparing its cash flow statement under the direct method and has provided this information:
Information | Amount |
Net credit sales | 13000000 |
Accounts receivable, end of the year | 3000000 |
Accounts receivable, beginning of the year | 2000000 |
Purchase (on account) | 7000000 |
Trade payable, end of the year | 3800000 |
Trade payable, beginning of the year | 5000000 |
Operating expenses | 5000000 |
Accrued expenses, beginning of the year | 2000000 |
Accrued expenses, end of the year | 900000 |
Depreciation on property, plant, and equipment | 1100000 |
Required:
For the purposes of the cash flow statement under the direct method, you are required to compute the cash collections from customers, payments to suppliers and cash paid for operating expenses accordance with IAS 7.
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