Exam 6: Measuring and Reporting Cash Flows

How would these items be classified in a statement of cash flows prepared for a hairdressing franchise? i)Payment of $600 for hairdressing supplies. Ii)Takings from customers for the month. Iii)Capital paid into the business by the owner.

Cameron's Screensavers Ltd Statement of financial position as at 31 December 2018 (Extracts) 2017 2018 \& \ Shareholders' Equity Share capital ( \1 shares) 250,000 360,000 Revaluation reserve 20,000 60,000 General reserve 150,000 100,000 Retained profits 66,000 76,000 \4 86,000 \5 96,000 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.

If 'other expenses' in the profit and loss report is $35,000 including $8,000 of depreciation, accrued 'other expenses' at the beginning of the year is $1,000 and $0 at the end of the year, the figure for 'other expenses' that will appear in the statement of cash flows for the year is:

If $90,000 is owed by customers at the beginning of the year, $75,000 is owed at the end and credit sales are $120,000, the cash received from customers is:

The income statement tends to obscure cash movements because it is

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:

With what are operating activities concerned?

Which statement is correct?

The following information is produced on an accrual basis and relates to Emily's Superior Photo Framers. Statement of comprehensive income for the year ended 31 December 2018 Additional Information: • Emily withdrew $25,000 through the year for her own use. • No photo framing equipment was sold during the year. REQUIRED: a)Prepare a classified statement of cash flows for the year ended 31 December 2018 from the above information. Show all workings. b)Prepare a statement reconciling profit with cash flow from operating activities. c)Comment on what the statement of cash flows reveals about the cash situation of Emily's Superior Photo Framers.

What is the report prepared to summarise the entity's cash transactions for the period?

Which of the following is a cash transaction?

Cash inflows and outflows associated with changes in non-current liabilities and equity, not arising from profit, are included in which section of the statement of cash flows?

Which of these items will appear in a statement of cash flows?

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:

If the opening balance of equity is $45,000, the closing balance is $60,000 and profit is $27,000, calculate the amount of dividends paid (assume all dividends declared have been paid)which will appear as a financing outflow in the statement of cash flows.

In a growing business that keeps its asset base up-to-date, total cash flow from investing activities will normally be:

Xi Co provides you with the following information about its equipment account: Opening balance of equipment $\quad \$ 300,000$ Closing balance of equipment $\quad \$ 550,000$ If machinery that originally cost $100,000 was sold during the year, what was the value of new equipment purchased?

Depreciation of plant and equipment will appear in which section of the statement of cash flows?

The difference between operating profit or loss after tax and net cash provided by operating activities is due to:

In 2015, G Co repaid $45,000 to the bank on a mortgage loan. $35,000 was interest on the mortgage and $10,000 was repayment of the principal. The repayment would appear in the statement of cash flows as: