You are presented with the following information:

Starter commenced business on 1 April 2011.

Required:
(a) Compile Starter's cash flow statement for the year ended 31 March 2012.
(b) What does it tell the owners ofStarter?

Transcribed Image Text:

Starter Profit and loss account for the year to 31 March 2012 Sales Purchases Less: Closing stock Gross profit Less Depreciation Net profit for the year 10000 5000 1000 4000 6000 2000 4000 Balance sheet at 31 March 2012 Van 10000 2000 8000 Less: Depreciation Stock Trade debtors Bank 1000 5000 12 500 18500 2500 Less: Trade creditors 6000 24000 Capital Add: Net profit for the year 20000 4000 24000