Exam 8: Measuring and Reporting Cash Flows

If credit sales for the year are $120 000 and the accounts receivable balance has increased by $10 500 over the year, how much cash was received from accounts receivable during the year?

Xi Co provides you with the following information about its equipment account: Opening balance of equipment \3 00,000 Closing balance of equipment \5 50,000 If machinery that originally cost $100 000 was sold during the year, what was the value of new equipment purchased?

Calculate net cash flow from operating activities if: Statement of financial performance (extract) Sales (credit) \ 80,000 Less Expenses (cash) \ 48,000 Profit \ 32,000 Ledger account (extract) Start of End of Period Period Accounts receivable \ 6000 \ 9000

What does the statement of cash flows allow management to assess?

For The Book Co share capital increased by $200 000 in total over a year in which there was a bonus issue of 20 000 new shares at $2 per share. The cash flow from the issue of shares is:

From the following information calculate the cash received from customers. Accounts receivable opening blance \ 20,000 Credit Sales \ 860,000 Accounts receivable closing balance \ 40,000

Which of the following statements is not true?

Indulgence Chocolates has provided the following information: Cost of sales for the year \ 190,000 Opening balance of accounts payable \ 50,000 Closing balance of accounts payable \ 60,000 Opening balance of inventory \ 20,000 Closing balance of inventory \ 36,000 The cash payments made to suppliers during the year total:

Calculate cash from operating activities using the following information: Profit $\quad$$\quad$$\quad$$\$ 148,000$ Depreciation $\quad$$\quad$$\$ 40,000$ . Inventory increased by $\quad$$\$ 10,000$ .

Which of these correctly shows the effect of charging depreciation on equipment for the period?

If the opening balance of rent accrued at the beginning of the year was $1 000, rent expense for the year was $20 000 and the closing balance of rent accrued at the end of the year was $1 200, the amount paid in cash for rent during the year is:

H Company's accounting records show: $ Credit sales for the year 650,000 Discounts provided for early payment 15,000 Opening balance of accounts receivable 100,000 Closing balance of accounts receivable 90,000 The cash received from customers is:

Royal Plastics provides the following information about its moulding machinery: Opening balance of machinery account \5 00,000 Closing balance of machinery account \6 50,000 Depreciation expense for the year \5 0,000 Depreciation charged on machinery sold \1 30,000 Profit on sale of machinery \2 0,000 Caryving value of machinery sold \9 0,000 - What is the total cost of machinery purchased during the year?

Cameron's Screensavers Ltd $\text { Statement of financial position as at } 31 \text { December } 2018 \text { (Extracts) }$ 2017 $\quad$$\quad$ 2018 $ $\quad$$\quad$$\quad$$\quad$ $ Shareholders' Equity Share capital ( \1 shares) 250,000 360,000 Revaluation reserve 20,000 60,000 General reserve 150,000 100,000 Retained profits \ 486,000 \ 596,000 Additional information: • There was a bonus issue of 1 bonus share for every 5 existing shares held. • Land and buildings was revalued by $40 000. • A profit of $17 000 was earned during the year. • Dividends of $6 000 were paid during the year that had been provided for in the prior year and $7 000 was provided as a final dividend at the end of the current year. REQUIRED: Show the financing section of the statement of cash flows for Cameron Screensavers for the year ended 31 December 2009. _____________________________________________________________________________________________ _____________________________________________________________________________________________

All purchases of inventory are for cash. If inventory at the beginning of the year is $63 000 and at the end $88 000 and the cost of sales is $200 000, the cash paid for inventory purchased for the year is:

State the effect on profit and cash of depreciating a non-current asset.

University Press showed wage and salary expenses of $250 000 on its 2018 statement of comprehensive income but reported cash paid to employees of $215 000 on its statement of cash flows. If the beginning balance of accrued wages and salaries payable was $18 000, the ending balance is:

Which item is not classified as a cash flow from investing activities?

The statement of cash flows must include a note reconciling:

When preparing the note attached to the statement of cash flows reconciling operating profit with cash flow from operations, which statement is not true?