The Blackbeard Company Ltd provided the following information in regard to its o
ID: 2411299 • Letter: T
Question
The Blackbeard Company Ltd provided the following information in regard to its operations for the year ended 30 June 2014:
Cash Book Summary
Opening balance
$20,000
Accounts Payable
$40,000
Accounts receivable
100,000
Bills Payable (suppliers)
20,000
Bills Receivable (suppliers)
20,000
Interest paid
60,000
Debenture Issue
400,000
Operating expenses
180,000
Dividends received
20,000
Salaries & wages
200,000
Interest received
40,000
Current tax payable
80,000
Motor vehicles
60,000
Plant & machinery
100,000
Share capital
200,000
Dividend paid
120,000
Balance c/d
60,000
860,000
860,000
Balance b/d
60,000
Required:
(a) Net cash used in operating activities; (b) Net cash used in investing activities; (c) Net cash from financing activities;
(d) Net increase/(decrease) in cash and cash equivalents.
Please use the following format
Statement of Cash Flows for Blackbeard Company
For the Financial Year Ended 30 June 2014
( i ) Cash flows from Operating Activities
Inflows/
Inflows/
(Outflows)
(Outflows)
Net cash used in operating activities
( ii ) Cash flows from Investing Activities
Net cash used in Investing Activities
( iii ) Cash flows from Financing Activities
Cash Book Summary
Opening balance
$20,000
Accounts Payable
$40,000
Accounts receivable
100,000
Bills Payable (suppliers)
20,000
Bills Receivable (suppliers)
20,000
Interest paid
60,000
Debenture Issue
400,000
Operating expenses
180,000
Dividends received
20,000
Salaries & wages
200,000
Interest received
40,000
Current tax payable
80,000
Motor vehicles
60,000
Plant & machinery
100,000
Share capital
200,000
Dividend paid
120,000
Balance c/d
60,000
860,000
860,000
Balance b/d
60,000
Explanation / Answer
Statement of Cash flows for Blackbeard Company For the Financial Year Ended 30 June 2014 (i) Cash flow from Operating Activities Inflows/(outflows) Inflows/(outflows) Accounts Receivable $ 1,00,000 Bills Receivable (suppliers) $ 20,000 Accounts Payable $ -40,000 Bills Payable(suppliers) $ -20,000 Operating expense $ -1,80,000 Salaries and wages $ -2,00,000 Current Tax Payable $ -80,000 Dividend received $ 20,000 Interest received $ 40,000 Net Cash used in Operating Activties $ -3,40,000 (ii) Cash flow from Investing Activities Sales of Motor Vehicle $ 60,000 Purchase of Plant and Machinery $ -1,00,000 Net Cash from Investing Actiivties $ -40,000 (iii) Cash flow from Financing activities Debenture issue $ 4,00,000 Share capital $ 2,00,000 Interest paid $ -60,000 Dividend paid $ -1,20,000 Net Cash from financing actiivties $ 4,20,000 Net Increase /(decrease) in cash and cash equivalent $ 40,000 Cash at the Beginning of the period $ 20,000 Cash at the end of the period $ 60,000
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