Question: Payless Ltd has provided their Cash Flow Statement for the year ended 30 June 2021: Payless Ltd Statement of Cash Flows For the year ended

Payless Ltd has provided their Cash Flow Statement for the year ended 30 June 2021:

Payless Ltd

Statement of Cash Flows

For the year ended 30 June 2021

$

$

Cash flows from operating activities:

Receipts:

Collections from customers

1,450,000

Payments:

To suppliers

(550,000)

To employees

(185,000)

For other expenses

(152,000)

(887,000)

Net cash provided by operating activities

563,000

Cash flows from investing activities:

Acquisition of building

(800,000)

Net cash used by investing activities

(800,000)

Cash flows from financing activities:

Proceeds from new share issue

200,000

Payment of dividends

(20,000)

Proceeds from bank loan

300,000

Repayment of bank loan

(10,000)

Net cash provided by financing activities

470,000

Net cash increase

233,000

Cash balance 1 July 2020

80,000

Cash balance 30 June 2021

313,000

Required

Discuss each area of the cash flow and the overall result.

Please take your time just make sure your answer is 100% correct

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