Norwich Ltd started trading on 1 January 2021 with a medium-term 5% loan of €30,000 and a share issue which raised €40,000. The company purchased non-current assets for €40,000, for which €25,000 was paid in cash and a note payable due in June 2021 was signed for €15,000. 

During the year to 31 December 2021 entered into the following transactions:

Sales revenue was €31,800, including €1,800 trade receivables at the year-end.

Purchases from suppliers were €21,000, of which €2,000 was unpaid at the year-end.

Wages and salaries amounted to €11,500, of which €1,700 was unpaid at the year-end.

Interest on the loan of €1,500 was fully paid in the year and a repayment of the principal was made in the amount of €5,000.

Interest on cash deposits at the bank amounted to €80.

Use the following pro-forma to complete Norwich Ltd’s statement of cash flows by writing the appropriate amounts in the answer boxes. 

Norwich Ltd

Statement of Cash Flows for the Year to 31 December 2021

Cash flows from operating activities	€
Cash received from customers
Cash paid to suppliers
Cash paid to employees
Interest paid
Interest received	80
Net cash flows from operating activities
Investing activities
Acquisition of non-current assets
Financing activities
Proceeds from a share issue
Proceeds from a loan
Repayment of a loan
Net cash flows from financing activities
Net increase in cash
Cash at 1 January 2021	---
Cash at 31 December 2021

Answer rating: 100% (QA)

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