The Chan Company's accounting records include the following information for the year ended 30th September 2014:...

 

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The Chan Company's accounting records include the following information for the year ended 30th September 2014: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. Salary expense Interest Revenue Proceeds from issue of shares Declaration and payment of dividends Collection of interest receivable Payment of salaries Sales (all on credit) Loan made to an another company Proceeds from sale of non-current assets Cash collections from customers Cash receipt of dividend (on investments) Payments to suppliers Cash sales Depreciation expense Short term borrowings (cash received) Repayment of long term debt Interest expense and payments Collection of cash from previous loan Proceeds from sale of investments Amortisation expense Purchase of inventory on credit from suppliers Income tax expense Income tax payments Cash paid for purchase of non-current assets Cost of goods sold Cash Balance: 30 Sept 2013 $83,000 30 Sept 2014 $54,000 $104,000 8,000 31,000 22,000 7,000 110,000 358,000 42,000 18,000 including $1,000 loss. 369,000 3,000 319,000 92,000 32,000 38,000 57,000 11,000 51,000 22,000 including $13,000 gain. 5,000 297,000 18,000 16,000 83,000 284,000 Required: Prepare a cash flow statement for the year ended 30th September 2014 using the DIRECT METHOD for determining Cash flow from Operations. The Chan Company's accounting records include the following information for the year ended 30th September 2014: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. Salary expense Interest Revenue Proceeds from issue of shares Declaration and payment of dividends Collection of interest receivable Payment of salaries Sales (all on credit) Loan made to an another company Proceeds from sale of non-current assets Cash collections from customers Cash receipt of dividend (on investments) Payments to suppliers Cash sales Depreciation expense Short term borrowings (cash received) Repayment of long term debt Interest expense and payments Collection of cash from previous loan Proceeds from sale of investments Amortisation expense Purchase of inventory on credit from suppliers Income tax expense Income tax payments Cash paid for purchase of non-current assets Cost of goods sold Cash Balance: 30 Sept 2013 $83,000 30 Sept 2014 $54,000 $104,000 8,000 31,000 22,000 7,000 110,000 358,000 42,000 18,000 including $1,000 loss. 369,000 3,000 319,000 92,000 32,000 38,000 57,000 11,000 51,000 22,000 including $13,000 gain. 5,000 297,000 18,000 16,000 83,000 284,000 Required: Prepare a cash flow statement for the year ended 30th September 2014 using the DIRECT METHOD for determining Cash flow from Operations.

Answer rating: 100% (QA)

Cash flow statement under Direct Method Operating activities Cash receipt an... View the full answer