AFM101 Lecture Notes - Lecture 4: Cash Cash, Money Market Fund, Cash Flow
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The Blackbeard Company Ltd provided the following information in regard to its operations for the year ended 30 June 2014:
| Cash Book Summary | |||
| Opening balance | $20,000 | Accounts Payable | $40,000 |
| Accounts receivable | 100,000 | Bills Payable (suppliers) | 20,000 |
| Bills Receivable (suppliers) | 20,000 | Interest paid | 60,000 |
| Debenture Issue | 400,000 | Operating expenses | 180,000 |
| Dividends received | 20,000 | Salaries & wages | 200,000 |
| Interest received | 40,000 | Current tax payable | 80,000 |
| Motor vehicles | 60,000 | Plant & machinery | 100,000 |
| Share capital | 200,000 | Dividend paid | 120,000 |
| Balance c/d | 60,000 | ||
| 860,000 | 860,000 | ||
| Balance b/d | 60,000 | ||
Required:
(a) Net cash used in operating activities; (b) Net cash used in investing activities; (c) Net cash from financing activities;
(d) Net increase/(decrease) in cash and cash equivalents.
Please use the following format
| Statement of Cash Flows for Blackbeard Company | ||
| For the Financial Year Ended 30 June 2014 | ||
| ( i ) Cash flows from Operating Activities | Inflows/ | Inflows/ |
| (Outflows) | (Outflows) | |
| Net cash used in operating activities | ||
| ( ii ) Cash flows from Investing Activities | ||
| Net cash used in Investing Activities | ||
| ( iii ) Cash flows from Financing Activities | ||
Sorry about these values, this thing is kind of messed up. Ihope this can be understood.
The following is the Choco Companyâs balance sheet and incomestatement as of 12/31/2016.
Balance Sheet | 2015 | 2016 |
| Cash Accounts receivable Inventory Long-term investments Total assets Liabilities and stockholdersâ equity: (no value) Accounts payable Salary payable Bonds payable Common stock Retained earnings Total liabilities and stockholdersâ equity | $ 120,000 105,000 225,000 60,000 510,000 120,000 15,000 100,000 125,000 150,000 510,000 | 21,500 195,000 180,000 -0- 396,500 75,000 24,000 70,000 125,000 102,500 396,500 |
Income statement | ||
| Revenue:(no value) Sales Loss on sales of long-term investment Expenses: (no value) Cost of goods sold Salary expense Net income (loss) | 560,000 (7,500) (375,000) (180,000) (2,500) | |
During 2016, following transactions were made:
Sold long-term investment for a loss of $7,500 (sold for$52,500).
$30,000 of bonds payable matured in 2016.
Paid cash dividends of $45,000.
What is the amount of cash inflow/outflow/ from their customers?(assume Sales are all credit sales)
What is the amount of cash inflow/outflow from the loss on thesales of long-term investment?
What is the amount of cash inflow/outflow from theirsuppliers?
What is the amount of cash inflow/outflow from theiremployees?
What is the amount of cash inflow/outflow from their long-terminvestment?
What is the amount of cash inflow/outflow regarding the maturityof their bonds payable?
What is the amount of cash inflow/outflow regarding the cashdividends?
Using the above balance sheet, income statement and informationfrom a to g, prepare the entire cash flow statement using thedirect method.
| Choco Company Statement of Cash Flows For the year ended December 31, 2016 | |
| Cash flows from operating activities: Cash inflows: Cash outflows: Net cash flows from operating activities | |
| Cash flows from investing activities: Net cash flows from investing activities | |
| Cash flows from financing activities: Net cash flows from financing activities | |
Cash balance, 12/31/2016 | |
