Question

The Blackbeard Company Ltd provided the following information in regard to its operations for the year ended 30 June 2014:

Cash Book Summary
Opening balance	$20,000	Accounts Payable	$40,000
Accounts receivable	100,000	Bills Payable (suppliers)	20,000
Bills Receivable (suppliers)	20,000	Interest paid	60,000
Debenture Issue	400,000	Operating expenses	180,000
Dividends received	20,000	Salaries & wages	200,000
Interest received	40,000	Current tax payable	80,000
Motor vehicles	60,000	Plant & machinery	100,000
Share capital	200,000	Dividend paid	120,000
		Balance c/d	60,000
	860,000		860,000
Balance b/d	60,000

Required:

(a) Net cash used in operating activities; (b) Net cash used in investing activities; (c) Net cash from financing activities;

(d) Net increase/(decrease) in cash and cash equivalents.

Please use the following format

Statement of Cash Flows for Blackbeard Company
For the Financial Year Ended 30 June 2014
( i )       Cash flows from Operating Activities	Inflows/	Inflows/
	(Outflows)	(Outflows)
Net cash used in operating activities
( ii )      Cash flows from Investing Activities
Net cash used in Investing Activities
( iii )     Cash flows from Financing Activities

Answer 1

Statement of Cash flows for Blackbeard Company
For the Financial Year Ended 30 June 2014
(i) Cash flow from Operating Activities
						Inflows/(outflows)			Inflows/(outflows)
	Accounts Receivable					$       1,00,000
	Bills Receivable (suppliers)					$           20,000
	Accounts Payable					$         -40,000
	Bills Payable(suppliers)					$         -20,000
	Operating expense					$     -1,80,000
	Salaries and wages					$     -2,00,000
	Current Tax Payable					$         -80,000
	Dividend received					$           20,000
	Interest received					$           40,000
	Net Cash used in Operating Activties								$ -3,40,000
(ii) Cash flow from Investing Activities
	Sales of Motor Vehicle					$           60,000
	Purchase of Plant and Machinery					$     -1,00,000
	Net Cash from Investing Actiivties								$     -40,000
(iii) Cash flow from Financing activities
	Debenture issue					$       4,00,000
	Share capital					$       2,00,000
	Interest paid					$         -60,000
	Dividend paid					$     -1,20,000
	Net Cash from financing actiivties								$   4,20,000
	Net Increase /(decrease) in cash and cash equivalent								$      40,000
	Cash at the Beginning of the period								$      20,000
	Cash at the end of the period								$      60,000