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XYZ Services, a consulting firm, experienced the following transactions in June 2024: June 1, 2024: XYZ Services received cash of SAR 50,000 for services rendered.
XYZ Services, a consulting firm, experienced the following transactions in June 2024:
- June 1, 2024: XYZ Services received cash of SAR 50,000 for services rendered.
- June 5, 2024: Paid rent for office space, SAR 10,000.
- June 10, 2024: Received payment from clients on account, SAR 30,000.
- June 15, 2024: Paid salaries and wages to employees, SAR 20,000.
- June 20, 2024: Purchased office supplies for cash, SAR 5,000.
- June 25, 2024: Collected cash from clients, SAR 25,000.
Requirements:
- Create a cash flow statement for XYZ Services for the month of June 2024.
- Analyze the operating cash flow and cash flow from financing activities for XYZ Services.
- Prepare a summary of cash receipts and cash payments for June 2024.
- Evaluate the liquidity position of XYZ Services based on the cash flow analysis.
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