Question

PART 5.Prepare a Cash flow statement by using the below data of the Cash account 31.3.2017 Balance b/d 1.4.2016 Equity shares Receipt from customers Sale of fixed asset 50 Payment to suppliers 2,000 300 Purchase of fixed assets 200 2,800 Overhead expenses 200 50 100 Wages and salaries 100 taxation 250 Dividend Repayment of Loan 300 Balance c/d(31.8.2007) 150 3,250 3,2501 Direction: Using the above details 1. Compute the operating activities Marking Scheme: Computation: 2 Marks, Correct Answer: 1 Mark, Total:3 Marks 2. Compute the Investment Activities Marking Scheme: Computation: 2 Marks, Correct Answer:1 Mark, Total: 3 Marks 3. Compute the Financial Activities Marking Scheme: Computation: 2 Marks, Correct Answer: 1 Mark, Total:3 Marks

Answer 1

Please find the direct method cash flow

Particulars	Amount
Cash flows from operating activities :
Receipts from customers	2,800
Payment to suppliers	(2,000)
Payment for overhead	(200)
Payment for wages and salaries	(100)
Payment for taxes	(250)
Net cash provided by operating activities	250
Cash flows from investing activities:
Sale of fixed asset	100
Purchase of fixed asset	(200)
Net cash used for investing activities	(100)
Cash flows from financing activities:
Proceeds from issuance of equity shares	300
Payment of dividend	(50)
Repayment of loan	(300)
Net cash used for financing activities	(50)
Net increase in cash	100
Cash at beginning of year	50
Cash at end of year	150