Required: (a) Prepare a Statement of Cash Flows for Joe Snow for the year ending 30 June 2021 (b) Evaluate the cash performance of Joe Snow (c) Outline some cash flow warning signals (d) Describe the three sections of the statement of cash flows

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Presented below is information for Joe Snow, a sole trader for the year ending 30 June 2021:
Cash balance as at 30 June 2021
Payments to employees and suppliers
Made a $20,000 Gain on land sold for $50,420 cash,
original cost $30,420
Gst Paid
Proceeds of bank loan
Depreciation expense
Payments for property, plant and equipment
Cash balance as a 1 July 2020
Net profit
Drawings by Joe Snow
Cash Sales
Receipts from Debtors
Interest Received
Interest Paid
Cost of goods sold
68,340
291,300
(c) Outline some cash flow warning signals
(d) Describe the three sections of the statement of cash flows
?
22,400
33,600
13,440
56,000
51,540
72,150
70,580
180,000
189,700
8,960
5,600
220,000
Required:
(a) Prepare a Statement of Cash Flows for Joe Snow for the year ending 30 June 2021
(b) Evaluate the cash performance of Joe Snow
Transcribed Image Text:Presented below is information for Joe Snow, a sole trader for the year ending 30 June 2021: Cash balance as at 30 June 2021 Payments to employees and suppliers Made a $20,000 Gain on land sold for $50,420 cash, original cost $30,420 Gst Paid Proceeds of bank loan Depreciation expense Payments for property, plant and equipment Cash balance as a 1 July 2020 Net profit Drawings by Joe Snow Cash Sales Receipts from Debtors Interest Received Interest Paid Cost of goods sold 68,340 291,300 (c) Outline some cash flow warning signals (d) Describe the three sections of the statement of cash flows ? 22,400 33,600 13,440 56,000 51,540 72,150 70,580 180,000 189,700 8,960 5,600 220,000 Required: (a) Prepare a Statement of Cash Flows for Joe Snow for the year ending 30 June 2021 (b) Evaluate the cash performance of Joe Snow
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