Question

Assume that you are working as an Accounts Manager in AB ACCESS LIMITED, a company engaged in providing supervision services for construction projects. The management of the company is concerned about cash flow of the business and have asked you to prepare a statement of cash flow showing how much cash flow occurred in the operating, investing and financing activities of the business during the financial period ended 30 June 2018.

Particulars	2017 £	2018 £
Assets
Cash	20,000	15,000
Accounts Receivable	45,000	50,000
Prepaid Expenses	10,000	5,000
Building and Equipment	70,000	85,000
Accumulated Depreciation - Building & Equipment	(7,500)	(17,500)
	137500	137500
Liabilities & Capital
Accounts Payable	2,000	6,000
Accrued Expenses	10,500	7,500
Capital Stock	100,000	90,000
Retained Earnings	25,000	34,000
	137500	137500

Answer 1

Solution :

Please find the attached screenshot of the excel sheet containing the detailed calculation for the solution.