Question

Using the information below, Complete the Cash Flow Statement for Jenna Jam’s on 31 December 2019. Cash 01/01/2019 272,000 Cash 31/12/2019 ???? Depreciation on Motor Vehicle 9,000 Owner investment 90,000 Interest on Loan Payable 4,700 Payment for purchase of Motor Vehicle 21,800 Collections from customers 283,000 Owner withdrawals 91,000 Payment of wages 121,000 Cash received for sale of Land 580,000 Payment to suppliers 345,000

Answer 1

Solution:
	Statement of Cash Flows - Direct Method
	© www.excel-skills.com	Amount
	Cash flows from operating activities
	Cash Receipts:
	Collection from Customers	$      2,83,000
	Cash Payments:
	Paymet to Suppliers	$    -3,45,000
	Interest on Loan Payable	$         -4,700
	Payment of Wages	$    -1,21,000
	Net cash from operating activities		$ -1,87,700
	Cash flows from investing activities
	Purchase of Motor Vehicles	$       -21,800
	Cash Received from Sale of Land	$      5,80,000
	Net cash used in investing activities		$   5,58,200
	Cash flows from financing activities
	Owner Withdrawals	$       -91,000
	Owner investment	$         90,000
	Net cash used in financing activities		$       -1,000
	Net increase in cash and cash equivalents		$   3,69,500
	Cash and cash equivalents at beginning of period		$   2,72,000
	Cash and cash equivalents at end of period		$   6,41,500