How to solve in this statement problem of cash flow? Show the the solution Plsss help meee to solve this. Thankyou The following data are taken from the records of Butt I. Que for the year 2020. Prepare a cash flowstatementLegal fees received from clientsDepreciation expense408,00070,000Proceeds of bank loan504,000Cash purchase of landProvision for bad debts1,100,00013,000300,000200,00023,00032,0007,240360,000600,00094,000860,000Additional investments of Atty. QuePartial payment of bank loanCommission income receivableResearch income receivedTaxes and licenses payableOperating expensesCollection of accountsInterest on bank loan paidProceeds from sale of equipmentCash balance on January 1, 2018 is 200,000

Statement of cash flows is one of the financial statement of business, which shows all cash inflows…

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Business

Accounting

How to solve in this statement problem of cash flow? Show the the solution Plsss help meee to solve this. Thankyou

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

How to solve in this statement problem of cash flow? Show the the solution Plsss help meee to solve this. Thankyou

The following data are taken from the records of Butt I. Que for the year 2020. Prepare a cash flow
statement
Legal fees received from clients
Depreciation expense
408,000
70,000
Proceeds of bank loan
504,000
Cash purchase of land
Provision for bad debts
1,100,000
13,000
300,000
200,000
23,000
32,000
7,240
360,000
600,000
94,000
860,000
Additional investments of Atty. Que
Partial payment of bank loan
Commission income receivable
Research income received
Taxes and licenses payable
Operating expenses
Collection of accounts
Interest on bank loan paid
Proceeds from sale of equipment
Cash balance on January 1, 2018 is 200,000

Definition Definition Net amount of cash that an entity receives and expends over the course of a given period. For a business to continue operating, positive cash flows are required, and they are also necessary to produce value for investors. Investors in particular prefer to see growing cash flows even after capital expenditures have been paid for (which is known as free cash flow).

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