In: Accounting
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
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 | ||