Problem
Presented below is information for Joe Snow, a sole trader for the year ending 30 June 2021:
|
Cash balance as at 30 June 2021
|
68,340
|
|
Payments to employees and suppliers
|
291,300
|
|
Made a $20,000 Gain on land sold for $50,420 cash, original cost $30,420
|
?
|
|
Gst Paid
|
22,400
|
|
Proceeds of bank loan
|
33,600
|
|
Depreciation expense
|
13,440
|
|
Payments for property, plant and equipment
|
56,000
|
|
Cash balance as a 1 July 2020
|
51,540
|
|
Net profit
|
72,150
|
|
Drawings by Joe Snow
|
70,580
|
|
Cash Sales
|
180,000
|
|
Receipts from Debtors
|
189,700
|
|
Interest Received
|
8,960
|
|
Interest Paid
|
5,600
|
|
Cost of goods sold
|
220,000
|
Task
1. Prepare a Statement of Cash Flows for Joe Snow for the year ending 30 June 2021
2. Evaluate the cash performance of Joe Snow
3. Outline some cash flow warning signals
4. Describe the three sections of the statement of cash flows