Market to Plate Vegies sells a wide range of vegetables through credit sales at wholesale markets...

   

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Market to Plate Vegies sells a wide range of vegetables through credit sales at wholesale markets and cash sales from their own store. The bank has requested a Cash-flow Statement for last month and Signor Foppi provides you with the following transactions / events, and asks for your assistance. You are required to identify for each cash flow the correct classification, selecting from the drop down list; Operating, Investing or Financing. You must also indicate whether the cash-flow is an inflow or outflow. Where you believe there is no cash flow, use Not Applicable and No Cash-Flow label. Transactions Classification Inflow/Outflow Received a loan of $80,000 from NBA Bank repayable in 3 years Sold 40 boxes of vegetables on credit for $8,000 Sell old farm equipment for $3,800 making a profit on the sale Make arrangements with the neighbouring farm to use land for a fee: of $500 per fortnight Financing ● Not Applicable + Inflow No Cash-flow + ( Receive interest on bank investments $3,000 Sell 120 boxes of vegetables on credit $11,000 Paid annual insurance premium $14,500 Sell the equivalent of 12 boxes of vegetables for cash $4,500 Withdraw vegetables for own use $1,000 Donated $2,800 worth of vegetables to charity groups Paid quarterly telephone and internet charges $240 O O O O O O 4) Purchase fertilisers for $1,800 cash Receive payment from customer $18,000 Sell 90 boxes to vegetables to various restaurants' $13.500 on account Pay neighbouring farm $1,000 for months use of land Depreciation expense for the month $15,750 Paid employees $5,500 their monthly wages (2 4 4 ( ( O 4 46 AP 0 435 The owner used $2,000 cash from the business to pay their personal credit card The owner wins money in the lotto and contributes $40,000 to the business Due to the additional cash balance, the business makes an extra loan payment $22,000 4) 46 4) ( ( <> Market to Plate Vegies sells a wide range of vegetables through credit sales at wholesale markets and cash sales from their own store. The bank has requested a Cash-flow Statement for last month and Signor Foppi provides you with the following transactions / events, and asks for your assistance. You are required to identify for each cash flow the correct classification, selecting from the drop down list; Operating, Investing or Financing. You must also indicate whether the cash-flow is an inflow or outflow. Where you believe there is no cash flow, use Not Applicable and No Cash-Flow label. Transactions Classification Inflow/Outflow Received a loan of $80,000 from NBA Bank repayable in 3 years Sold 40 boxes of vegetables on credit for $8,000 Sell old farm equipment for $3,800 making a profit on the sale Make arrangements with the neighbouring farm to use land for a fee: of $500 per fortnight Financing ● Not Applicable + Inflow No Cash-flow + ( Receive interest on bank investments $3,000 Sell 120 boxes of vegetables on credit $11,000 Paid annual insurance premium $14,500 Sell the equivalent of 12 boxes of vegetables for cash $4,500 Withdraw vegetables for own use $1,000 Donated $2,800 worth of vegetables to charity groups Paid quarterly telephone and internet charges $240 O O O O O O 4) Purchase fertilisers for $1,800 cash Receive payment from customer $18,000 Sell 90 boxes to vegetables to various restaurants' $13.500 on account Pay neighbouring farm $1,000 for months use of land Depreciation expense for the month $15,750 Paid employees $5,500 their monthly wages (2 4 4 ( ( O 4 46 AP 0 435 The owner used $2,000 cash from the business to pay their personal credit card The owner wins money in the lotto and contributes $40,000 to the business Due to the additional cash balance, the business makes an extra loan payment $22,000 4) 46 4) ( ( <>

Answer rating: 100% (QA)

The solution to the above question is given below in the table Transactions Classification Inflow Ou... View the full answer