Question

19. Benito Company reported the following information for the financial year ended 30/06/2020:

Profit from ordinary activities before income tax expense	$986,000
Cash received from customers / Accounts receivables	80,000
Paid to suppliers / Accounts payable	80,000
Cash received from the sale of Land	28,000
Obtained a loan from Good Bank	60,000
Purchase a motor vehicle for cash	80,000
Share issues	120,000
Salary & wages paid	16,000
Dividend paid	14,000
Annual leave paid	20,000
Interest received from an investment	4,000
Purchased building for cash	40,000
Cash & Cash equivalents as of 01/07/2019	40,000
Loss of sale on land	60,000
Accrued wages	50,000
Trade stock as of 30/06/2020	15,000
Cost of goods sold	450,000
Provision for warranties	90,000

Required:

l. What is the net cash inflow (outflow) from operating activities?   

ll. What is the net cash inflow (outflow) from investing activities?

lll. What is the net cash inflow (outflow) from financing activities?

IV. Determine the cash & cash equivalents as of 30/06/2020.

V. Determine the total cash flow from operations as of the end of the year. Opening Balance of Cash at the start of the year is $100,000.

Answer 1

1. Net cash flow from operating activities:

Particulars	Amount
Cash recieved from customers	80,000
Cash paid to suppliers	(80,000)
Salary and wages paid	(16,000)
Annual leave paid	(20,000)
Total	(36,000)

2. Net cash flow from investing activities

Particulars	Amount
Cash recieved from sale of land	28,000
Purchased motor vehicle	(80,000)
Interes recieved from investment	4,000
Purchased building for cash	(40,000)
Total	(88,000)

3. Net cash flow from financing activities

Particulars	Amount
Obtained a loan	60,000
Shares issued	1,20,000
Dividend paid	(14,000)
Total	1,66,000

4. Cash and cash equivalents as on 30/06/19 = Cash and cash equivalents as on 1/7/19 = 40,000

5. Total cash flow from operations as of end of the year.

Particulars	Amount
+Cash flow operating activities	(36,000)
+Cash flow from investing activities	(88,000)
+Cash flow from financing activities	1,66,000
Net cash flow	42,000

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