Below are two balance sheets for Cameron's Cleaning plus information concerning net profit?

Net profit was $100 000 for the year, sales $370 000, interest paid $15 000, salaries $19 000, depreciation of equipment $50 000 and operating expenses $186 000.
REQUIRED:
a) Calculate:
i) Cash receipts from customers
ii) Cash payments for operating expenses.
b) Prepare the operating section of the cash flow statement for the year ended 30 June 2013.
c) List three warning signs that a cash flow statement can reveal which may indicate problems in managing cash.

Transcribed Image Text:

Balance sheets at 30th June 2013 2012 Cash Accounts receivable Prepaid operating expenses Equipment at cost Accumulated depreciation equipment Owner's Equity 72000 76000 25 000 7000 12 000 135 000 105 000 (45000 (25 000) (194 000) (179 000) 45 000