Cygnet Car Repairs had the following cash transactions over the financial year ending 30 June 2022....

 

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Cygnet Car Repairs had the following cash transactions over the financial year ending 30 June 2022. Opening cash balance, 1 July 2021 is $10 000. Transaction Acquisition of building Received loan funds Payment to employees Income Tax paid Sold machinery Drawings Paid bank interest Paid suppliers for inventory Cash sales Amount $575,000 $250,000 $42,800 $3,250 $210,000 $5,000 $2,529 $107,075 $205,350 a. b. C. Prepare a Cash Flow statement for Cygnet Car Repairs for the year ending 30 June 2022 using the information provided. Explain why sales made on credit terms are not included in the Cashflow Statement. Your answer should include an explanation of the difference between accrual and cash accounting (max 300 words). Explain whether this business could possibly have a profit in the Income Statement. Explain your answer by providing an example. (max 300 words). Cygnet Car Repairs had the following cash transactions over the financial year ending 30 June 2022. Opening cash balance, 1 July 2021 is $10 000. Transaction Acquisition of building Received loan funds Payment to employees Income Tax paid Sold machinery Drawings Paid bank interest Paid suppliers for inventory Cash sales Amount $575,000 $250,000 $42,800 $3,250 $210,000 $5,000 $2,529 $107,075 $205,350 a. b. C. Prepare a Cash Flow statement for Cygnet Car Repairs for the year ending 30 June 2022 using the information provided. Explain why sales made on credit terms are not included in the Cashflow Statement. Your answer should include an explanation of the difference between accrual and cash accounting (max 300 words). Explain whether this business could possibly have a profit in the Income Statement. Explain your answer by providing an example. (max 300 words). Cygnet Car Repairs had the following cash transactions over the financial year ending 30 June 2022. Opening cash balance, 1 July 2021 is $10 000. Transaction Acquisition of building Received loan funds Payment to employees Income Tax paid Sold machinery Drawings Paid bank interest Paid suppliers for inventory Cash sales Amount $575,000 $250,000 $42,800 $3,250 $210,000 $5,000 $2,529 $107,075 $205,350 a. b. C. Prepare a Cash Flow statement for Cygnet Car Repairs for the year ending 30 June 2022 using the information provided. Explain why sales made on credit terms are not included in the Cashflow Statement. Your answer should include an explanation of the difference between accrual and cash accounting (max 300 words). Explain whether this business could possibly have a profit in the Income Statement. Explain your answer by providing an example. (max 300 words). Cygnet Car Repairs had the following cash transactions over the financial year ending 30 June 2022. Opening cash balance, 1 July 2021 is $10 000. Transaction Acquisition of building Received loan funds Payment to employees Income Tax paid Sold machinery Drawings Paid bank interest Paid suppliers for inventory Cash sales Amount $575,000 $250,000 $42,800 $3,250 $210,000 $5,000 $2,529 $107,075 $205,350 a. b. C. Prepare a Cash Flow statement for Cygnet Car Repairs for the year ending 30 June 2022 using the information provided. Explain why sales made on credit terms are not included in the Cashflow Statement. Your answer should include an explanation of the difference between accrual and cash accounting (max 300 words). Explain whether this business could possibly have a profit in the Income Statement. Explain your answer by providing an example. (max 300 words).

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a Cash Flow Statement for Cygnet Car Repairs for the year ending 30 June 2022 Cash Flow Statement For the Year Ending 30 June 2022 Opening Cash Balanc... View the full answer