Question

In: Accounting

Rupert Ltd is preparing a Cash Flow Statement for the year ended 30 June 2020. The...

Rupert Ltd is preparing a Cash Flow Statement for the year ended 30 June 2020. The following information is available:

2020

2019

Cash at Bank

788

556

Accounts Receivable

775

610

Inventory

834

867

Accounts Payable

521

501

Salaries Payable

90

360

The Income Statement contained the following data as at 30 June:

2020

Credit sales

6,583

Cost of sales

3,400

Wages expense

1,070

Other expenses

1,920

Required:

Using the direct method, prepare the Operating Activities section of the Cash Flow Statement for the year ended 30 June 2020. Show workings.

Solutions

Expert Solution

The Operating Activities section of the Cash Flow Statement for the year ended 30 June 2020 is as follows:

                                                    Rupert Ltd

                       Statement of cash flow (Direct)

                    for the year ended 30 June 2020

Particular 2020 2019
Operating Activities:
Cash from Customer:
Sales Revenue        6,583
Less: Cash Paid for:
Cost of sales        ( 3,400)
Accounts Receivable     (165)
Inventory     33
Accounts Payable           20
Salaries Payable           ( 270)
Wages expense         (1,070)
Other expenses       (1,920 )    (6,772)
Net Cash from operating activities        ($189)

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