Question

LEBRON’S SPORTS SHOP COMPARATIVE BALANCE SHEETS AS AT DECEMBER 31                                                                2020                                    2019 $ $ Current Assets Cash at Bank 1 500 5 200 Accounts Receivable (net) 5 040 4 260 Interest Receivable Inventory 160 20 000 240 18 000 Prepaid Expenses    1 650 $28 350     800 $28 500 Non-Current Assets Plant & Equipment 74 000 64 000 less Acc. Depreciation (23 000) 51 000 (17 600) 46 400 Total Assets 79 350 74 900 Current Liabilities Accounts Payable 3 800 3 500 Interest Payable Expenses Payable 200 780 300 790 Tax Payable    720 5 500 1 200 5 790 Non-Current Liabilities Bank Loan 25 660 20 000 Total Liabilities 31 160 25 790 Net Assets $48 190 $49 110 Equity Capital 48 190 49 110 $48 190 $49 110

LEBRON’S SPORTS SHOP INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31 2020 Net Sales $92 400 Cost of Sales $54 200 less Discount Received 400 53 800 Gross Profit: 38 600 Other Revenue: Interest Income   760    760 39 360 Expenses: Selling & Admin Expense 19 000 Bad Debts Expense 200 Discount Allowed Depreciation Expense 100 5 400 Interest Expense 2 400 27 100 Profit before tax 12 260 Income tax expense 3 378 Profit $8 882

ADDITIONAL INFORMATION

The owner contributed $16,000 cash during the year. All drawings were for cash.

Required

Complete the cash flow statement on page 4 of this document. Please show your calculations on page 5 of the document. You can take a photo of your calculations if you do them by hand and then insert the photo into this document, but I want to see your calculations as well as your answers to both questions

For the Year ended 31^stDecember 2020

Cash from Operating Activities	$	$
Receipts from Customers
Payments to Suppliers and Employees
Cash from Operations
Interest Received
Interest Paid
Tax Paid
Cash from Operating Activities

Answer 1

CASH FLOW STATEMENT				Workings:
FOR THE YEAR ENDED 30th 2020				Calculation :
Cash Flow from Operating Activities				Cash collected from customers
Receipts form customers	$91,320			Beginning AR	$4,260
Payment to suppliers and employees	-$75,360			+ Sales (92,400 - 100)	$92,300
Cash from operations	$15,960			- Ending AR	-$5,040
Interest received (760 + 240 - 160)	$840			- Bad Debts	-$200
Interest paid (2400 + 300 - 200)	-$2,500				$91,320
Tax paid (3378 + 1200 - 720)	-$3,858
Cash from Operating Activities		$10,442		Purchase from suppliers
				- Beginning Inventory	-$18,000
				+ cost of goods sold	$53,800
				+ Ending Inventory	$20,000
					$55,800
				Cash paid for suppliers
				Beginning AP	$3,500
				+ purchase from suppliers	$55,800
				- Ending AP	-$3,800
					$55,500
				Cash paid for operating expenses:
				+ Beginning expenses payable	$790
				+ Selling and General expenses	$19,000
				- Ending expenses payable	-$780
				- Beginning prepaid expense	-$800
				+ Ending prepaid expense	$1,650
					$19,860