In addition there is following information:

During the year ended 31 December 2019 the following had taken place.

1 Inventory had increased by $17000.

2 Trade receivables had increased by $3000.

3 The bank balance had gone from an overdraft of $7000 to a positive balance.

4 The company had issued 72000 ordinary shares of $0.50 each at par value.

5 A new bank loan of $5000 had been received.

6 Trade payables had decreased by $6000.

7 A motor vehicle had been sold for $15000.

Q. Prepare a cash flow statement using the information above.
 

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The books of account of RF plc for the year ended 31 December 2019 showed the following. Plant and machinery Provision for depreciation of plant and machinery $000 Balance b/d Bank Balance b/d Dividend General reserve Balance c/d $000 100 38 138 Motor vehicles $000 60 60 Balance c/d 22 48 Disposal Balance c/d Retained earnings $000 8 18 Balance b/d Profit for the year $000 138 138 $000 16 44 60 $000 33 15 48 Balance c/d Disposal Balance c/d 32 Bank Balance c/d 32 Provision for depreciation of motor vehicles $000 4 31 35 Balance b/d Income statement 6 Balance b/d Income statement Interest payable $000 5 1 $000 20 12 Balance b/d Income statement 32 $000 25 10 35 $000 2 4 6 The books of account of RF plc for the year ended 31 December 2019 showed the following. Plant and machinery Provision for depreciation of plant and machinery $000 Balance b/d Bank Balance b/d Dividend General reserve Balance c/d $000 100 38 138 Motor vehicles $000 60 60 Balance c/d 22 48 Disposal Balance c/d Retained earnings $000 8 18 Balance b/d Profit for the year $000 138 138 $000 16 44 60 $000 33 15 48 Balance c/d Disposal Balance c/d 32 Bank Balance c/d 32 Provision for depreciation of motor vehicles $000 4 31 35 Balance b/d Income statement 6 Balance b/d Income statement Interest payable $000 5 1 $000 20 12 Balance b/d Income statement 32 $000 25 10 35 $000 2 4 6

Answer rating: 100% (QA)

To prepare a cash flow statement using the information provided for the year ended 31 December 2019 we will need to categorize the changes in balance ... View the full answer