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
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
