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Q1. Khaled Co is in Export business operating from Jeddah for the last 10 years

ID: 2588702 • Letter: Q

Question

Q1. Khaled Co is in Export business operating from Jeddah for the last 10 years successfully. From the following summary of Cash Account of Khaled, prepare Cash Flow Statement for the year ended 31st March 2017 in accordance with using the direct method. The company does not have any cash equivalents. (4 Points)

Summary (Cash Account) 31-3-2017

Particulars

Amount

Particulars

Amount

Bal 1.4.2016

50

Payments to Suppliers

2000

Equity Shares

300

Purchase of Fixed Asset

200

Receipt from Customers

2800

Overhead Expenses

200

Sale of Fixed Assets

100

Wages & Salaries

100

Taxation

250

Dividends

50

Repayment of long term Loans

300

Balance c/d

150

3250

3250

Particulars

Amount

Particulars

Amount

Bal 1.4.2016

50

Payments to Suppliers

2000

Equity Shares

300

Purchase of Fixed Asset

200

Receipt from Customers

2800

Overhead Expenses

200

Sale of Fixed Assets

100

Wages & Salaries

100

Taxation

250

Dividends

50

Repayment of long term Loans

300

Balance c/d

150

3250

3250

Explanation / Answer

Cash flow statement

Cash flow from operating activities Cash received from customers 2800 Cash paid to supplier (2000) Cash paid for overhead expenses (200) Cash paid for wages and salaries (100) Cash for income tax (250) Net cash flow from operating activities 250 Cash flow from investing activities Sale of fixed assets 100 Purchase of fixed assets (200) Net cash flow from investing activities (100) Cash flow from financing activities Dividend paid (50) Repayment of long term notes payable (300) Issue equity share 300 Net cash flow from financing activities (50) Net cash flow 100 Beginning cash 50 Ending cash 150