STATEMENT OF CASH FLOW Essay Example

Adjustments

Sales account

Total sales for the year 300,000

Cost of sales 184,050

Operating profit 115,950

otor vehicle accountM

Balance brought down 36,800 Decrease in motor vehicle 9,200

Balance carried down 27,600

36,800 36,800

Disposal of motor vehicle

Cost of motor vehicle 9,200

Loss on disposal of motor vehicle 5,450

Cash in hand or at bank 3,750

ccounts payableA

Balance brought down 23,600

Balance carried down 25,500 Increase in accounts payable 1,900

25,500 25,500

ccounts receivableA

Balance brought down 83,400

Increase in accounts receivable 6,600 Balance carried down 90,000

90,000 90,000

ills receivableB

Balance brought down 5,200 Decrease in bills receivable 1,400

Balance carried down 3,800

5,200 5,200

nventory accountI

Balance brought down 56,300

Increase in inventory 8,400 Balance carried down 64,700

64,700 64,700

dvance accountA

Balance brought down 10,000 Decrease in advance 2,000

Balance carried down 8,000

10,000 10,000

Writing down of motor vehicle account

Balance brought down 9,200

Written down 6,100

Salvage value 3,100

Murray and darling

Statement of cash flow

As at 30^th June 2011

Cash from operating activities

Operating profit 115,950

Add loss on disposal of motor vehicle 5,450

: Receipt from customers 964,000

: Decrease in advance 2,000

: Decrease in bills receivable 1,400

: increase in accounts payable 1,900

Less accounts receivable (6,600)

: Expense incurred (75,000)

: Payment to suppliers (881,200)

: Increase in inventory (8,400)

Cash from operating activities 119,500 119,500

Cash from investing activities

Proceeds from sale of furniture 2,400

Add decrease in motor vehicle 9,200

Less purchase of fixtures (20,400)

: Purchase of investment (20,000)

: Purchase of property (40,000)

: Purchase of furniture (5,500)

Income from investing activities (74,300) (74,300)

Cash from financing activities

Decrease in bank overdraft 22,000

Less drawings: Murray (9,000)

: Darling (10,400)

Less retained earnings: Murray (14,400)

: Darling (9,300)

Income from financing activities (21,100) (21,100)

Change in cash and cash equivalent 24,100

Cash analysis

Change at the beginning 100

Change in cash and cash equivalent 24,100

Cash at the end 24,200

References

Hogget, J. R. (2009). Financial Accounting: 7th edition. Camberwell: John Wiley & Sons

Australia Ltd.