Crabtree Car Detailing had the following transactions over the financial year ending 30 June 2022. Opening...
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Crabtree Car Detailing had the following transactions over the financial year ending 30 June 2022. Opening cash balance, 1 July 2021 is $10 000. Transaction Cash purchase of plant and equipment Loan funds received Credit sales Paid employee salaries Paid income tax Cash received for sale of motor vehicles Cash drawings by owner Bank interest paid Cash paid for inventory Depreciation on motor vehicles Cash sales a. b. C. Amount $375,000 $200,000 $153,000 $32,800 $13,250 $70,000 $15,000 $3,529 $97,075 $7,000 $185,350 Prepare a Cash Flow statement for Crabtree Car Detailing for the year ending 30 June 2022 using the information provided. Explain how a business could have a negative net cash flow on the cash flow statement but still record a profit on the income statement (maximum 200 words). Explain whether depreciation should be included on the cash flow statement Crabtree Car Detailing had the following transactions over the financial year ending 30 June 2022. Opening cash balance, 1 July 2021 is $10 000. Transaction Cash purchase of plant and equipment Loan funds received Credit sales Paid employee salaries Paid income tax Cash received for sale of motor vehicles Cash drawings by owner Bank interest paid Cash paid for inventory Depreciation on motor vehicles Cash sales a. b. C. Amount $375,000 $200,000 $153,000 $32,800 $13,250 $70,000 $15,000 $3,529 $97,075 $7,000 $185,350 Prepare a Cash Flow statement for Crabtree Car Detailing for the year ending 30 June 2022 using the information provided. Explain how a business could have a negative net cash flow on the cash flow statement but still record a profit on the income statement (maximum 200 words). Explain whether depreciation should be included on the cash flow statement
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Answer rating: 100% (QA)
Answer Step 1 Statement of cash flows is one of the components of Financial Statements prepared It shows the flow of cash during the period All cash o... View the full answer
Related Book For
Financial Accounting
ISBN: 9781618533111
6th Edition
Authors: Michelle L. Hanlon, Robert P. Magee, Glenn M. Pfeiffer, Thomas R. Dyckman
Posted Date:
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