Prepare a Statement of Cash Flows from following information related to Internal Service Fund of City of Riyadh. (2 Marks)
Purchase of Capital Assets |
$ 50,000 |
Receipts from Customers |
400,000 |
Payment to Suppliers |
85,000 |
Cash Balance at the Beginning of the year |
25,000 |
Operating Income |
9,000 |
Depreciation |
8,000 |
Decrease in Inventories |
2,000 |
Increase in Account Payable |
4,000 |
Interest Received |
12,000 |
Cash Flow Statement of Internal Service Fund of City of Riyadh
Particulars | Amount | Amount |
Cash Flow from Operating Activities | ||
Receipts from Customer | 400000 | |
Payment to Suppliers | -85000 | |
Operation Income | 9000 | |
Depreciation | 8000 | |
Decrease in Inventory | 2000 | |
Increase in Accounts Payable | 4000 | |
Net Cash flow Operating Activities | 338000 | |
Cash Flow from Investing Activities | ||
Purchase of Capital Assets | -50000 | |
Net Cash flow Investing Activities | -50000 | |
Cash Flow from Financing Activities | ||
Interest Received | 12000 | |
Net Cash flow Financing Activities | 12000 | |
Increase/Decrease in the Cash | 300000 | |
Cash Balance at the beginning of the year | 25000 | |
Cash Balance at the Closing of the year | 325000 |
Logic:
Logically one needs to understand the cashflow statement will show the actual cash available with the business. The statement is divided into 3 sections. Cashflow from Operating Activities, Cashflow from Financing Activities and Cashflow from Investment Activities.
Cashflow from Operating Activities: This shall include all the transactions related to the daily operational activities.
Cashflow from Financing Activities: This shall include all the transactions related to financial matters. Eg. Interest received or paid, Dividend received or paid, Issuance of common stock etc
Cashflow from Investment Activities: This shall include all the transactions related to Investments in Assets. Eg. Purchase or sale of any Fixed Asset
Prepare a Statement of Cash Flows from following information related to Internal Service Fund of City...
Prepare a Statement of Cash Flows from following information related to Internal Service Fund of City of Riyadh. Purchase of Capital Assets $ 50,000 Receipts from Customers 400,000 Payment to Suppliers 85,000 Cash Balance at the Beginning of the year 25,000 Operating Income 9,000 Depreciation 8,000 Decrease in Inventories 2,000 Increase in Account Payable 4,000 Interest Received 12,000 please, writen answer
3. Prepare a Statement of Cash Flows from following information related to Internal Service Fund of City of Riyadh. (2 Marks) Purchase of Capital Assets $ 50,000 Receipts from Customers 400,000 Payment to Suppliers 85,000 Cash Balance at the Beginning of the year 25,000 Operating Income 9,000 Depreciation 8,000 Decrease in Inventories 2,000 Increase in Account Payable 4,000 Interest Received 12,000
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