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The following information about Melbourne Corp. applies to the entity for the year ended 30 June.    Payment to suppliers    170 000      Receipts from owners    399 000      Receipts from long-term borrowing    365 000      Payment of rates    150 000      Payment of wages    130 000      Purchase of land    120 000      Repayment of long-term borrowing    185 000      Receipts from customers    620 000      Payment for equipment    200 000      Depreciation on equipment    110 000        Required:       a) What was Melbourne Corp.’s cash flow from the following activities?   Operating activities Investing activities Financing activities b) In your own words, outline and briefly discuss some cash-flow warning signals.

The following information about Melbourne Corp. applies to the entity for the year ended 30 June.    Payment to suppliers    170 000      Receipts from owners    399 000      Receipts from long-term borrowing    365 000      Payment of rates    150 000      Payment of wages    130 000      Purchase of land    120 000      Repayment of long-term borrowing    185 000      Receipts from customers    620 000      Payment for equipment    200 000      Depreciation on equipment    110 000        Required:       a) What was Melbourne Corp.’s cash flow from the following activities?   Operating activities Investing activities Financing activities b) In your own words, outline and briefly discuss some cash-flow warning signals.

FINANCIAL ACCOUNTING
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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The following information about Melbourne Corp. applies to the entity for the year ended 30 June.

   Payment to suppliers

 

 170 000

 

   Receipts from owners

 

 399 000

 

   Receipts from long-term borrowing

 

 365 000

 

   Payment of rates

 

 150 000

 

   Payment of wages

 

 130 000

 

   Purchase of land

 

 120 000

 

   Repayment of long-term borrowing

 

 185 000

 

   Receipts from customers

 

 620 000

 

   Payment for equipment

 

 200 000

 

   Depreciation on equipment

 

 110 000

 

  

 

Required:

 

 

 

  1. a) What was Melbourne Corp.’s cash flow from the following activities?

 

Operating activities

Investing activities

Financing activities

  1. b) In your own words, outline and briefly discuss some cash-flow warning signals.
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