5.1 Tune Entity has the following information in respect of its projected 31 Dec

Question

5.1 Tune Entity has the following information in respect of its projected 31 December x4, its first year of operation Opening cash balance Credit sales (year-end receivable to be RM200,000) Cash sales Non-current assets purchased (RM300,000 paid in cash and balance on Credit purchases of goods for resale (RM120,000 unpaid at year-end) Wages and salaries for the year (RM34,000 unpaid at year-end) Other expenses Loan interest Interest on bank deposits Repayment of loan Tax paid during the year Dividend paid RM 485,000 720,000 300,000 510,000 610,000 1 10,000 25,000 1 1,000 2.30) 50,000 34,000 22,000 credi t) Required From the information given, prepare the statement of cash flows.

Explanation / Answer

Statement of Cash Flows: Particulars Amount(RM) Cash Flow from operating Activities: Collections from customers 720000-200000 520000 Cash Sales 300000 Payment to suppliers 610000-120000 -490000 Wages and salaries paid 110000-34000 -76000 Other Expenses -25000 Tax Paid during the year -34000 Cash Flow from operating Activities 195000 Cash Flow from Investing Activities: Purchase of non-current assets -300000 Interest on Bank Deposits 2300 Cash Flow from Investing Activities -297700 Cash Flow from Financing Activities: Repayment of loan -50000 Loan Interest -11000 Dividend Paid -22000 Cash Flow from Financing Activities -83000 Net Cash Flow during the year -185700 Opening Cash Balance 485000 Ending Cash Balance 299300

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