Question

1. From the following information you are required to p owing information you are required to prepare the Cash Flow Statement for the year ended 31st December 2020. (15 marks) Liabilities Share Capital 2019 (dhs) 241,000 2020 (dhs) 250,000 Profit Assets Land and Building 2019 (dhs) 191,000 2020 (dhs) 210,000 & Loss A/C 41,000 48,000 45,000 Machinery Loans 60,000 10,000 Creditors 25,000 Stock 30,000 17,000 40,000 Bills Payable Debtors 8,000 10,000 13,000 16,000 Bills Receivable 11,000 2,000 Cash 35,000 65,000 320,000 364,000 320,000 364,000

Answer 1

45,000 Statement of Cash Flows For Year the Ended December 31, 2020 Cash flows from operating activities Net income (difference in profit and loss a/c) 7,000 Decrease in stock 13,000 Increase in debtors -2,000 Decrease in bills receivable 9,000 Increase in creditors 15,000 Increase in bills payable 3,000 Net cash provided by operating activities Cash flows from investing activities Increase in land and building -19,000 Increase in machinery - 15,000 Net cash used for investing activities Cash flows from financing activities Increase in share capital 9,000 Net Cash provided by financing activities Net increase (decrease) in cash Cash balance at December 31, 2019 Cash balance at December 31, 2020 - 34,000 9,000 20,000 35,000 55,000