Question

O all 26% A 17:09 + CLP - Cash Flow Statement- - Saved fx E 25680 for the vear ended June 30, 2018 after charging depreciation of E 1750 and loss on disposal of furniture of E 680, The sale proceeds CLLP Limited made a net profit of of the furniture were E 1200, Additional Information: 10 11 Increase / Decrease 12 Account Name Amount 13 Fived Assets 740 decrease Debtors 1170 increme 14 15 Stocks 2160 decrease 16 Creditors 890 Increme 17 A lang - term loan of E7,500 was repaid during the year and issued 12000 new shares 1 II 18 19 Prepare Cash Flow Statement using indirect Method for the year ended June 30, 2018 20

Answer 1

Solution

CLLP Limited
Statement of Cash Flows-Indirect method
For the Year Ended June 30, 2018
Cash flows from operating activities:
Net income		£   25,680.00
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation expense	£     1,750.00
Loss on disposal of Furniture	£       680.00
Increase in debtors	-£     1,170.00
Decrease in stock	£     2,160.00
Increase in creditors	£       890.00
		£     4,310.00
Net cash from Operating Activities		£   29,990.00
Cash flows from investing activities:
Sale of Furniture	£     1,200.00
Purchase of Equipment
Net cash from Investing Activities		£     1,200.00
Cash flows from financing activities:
Repayment of long term loan	-£     7,500.00
Proceeds from issue of shares	£   12,000.00
Dividends paid
Net cash from Financing Activities		£     4,500.00
Net change in cash during the year		£   35,690.00

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