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 150Related Questions
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