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DWAYNE PIPE PLUMBING CASH FLOW STATEMENT FOR THE YEAR ENDING 30 JUNE 2018 Direct method Cash Flows from operating Activitie:s Receipts from customers Payments to suppliers & employees Cash generated by operations Interest paid Income tax paid Cash Flows from Investing Activities Interest received Payment for Plant & Equipment Cash Flows from Financing Activities Drawings Net increase/decrease in cash held Cash at the beginning of the year Cash at the end of the yearou are provided with the following financial information for Dwayne Pipe Plumbine DWAYNE PIPE PLUMBING INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2018 DWAYNE PIPE PLUMBING COMPARATIVE BALANCE SHEETS AS AT 30 JUNE Net Sales Cost of Salrs Gross Profit: Other Revenue Discount Received Interest Revenue 5107 000 45 200 61 800 2019 2018 Current Assets Cash on Hand Cash at Bank Accaunts Receivable Inet Inventory Prepaid Expenses Non-Current Assets Plant & Equipment LessiAccum, Depreciation Total Assets $1 200 $280 $4 000 1009 4 500 18 000 650 10 320 62 120 5 200 28 000 650 Expenses Sellng & Admin Expense Doubtful Debts Expense Depreciation Expense Interest Expense Profit beforc tax Income Tax Expense Profit 16 500 354 5 400 3 800 36 050 $28 159 83 500 64 000 26 054 36 006 3 378 1230002 60500 96 SS0 !1760이 46 400 74 S59 Current Liablities Bank Overdraft Accounts Payable Expenses Payable Tax Payable Non-Current Liobiites Bank Loan Total Liabilitles Net Assets 6 402 4 000 780 890 2 800 ANSWER THIS QUESTION ON THE PRO FORMA PROVIDED 12 072 1200 4790 REQUIRED: 20 000 32 072 $64 478 20 000 24 790 $49 769 a Prepare a Statement of Cash Flows in the pro forma provided on the following page. You must show all can (a answer without supporting calculations will recelve zero marks] (15 marks) Equity Capital R.Pias G4 478 49 769 $64 478 $49769

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Direct Method For the year ending Amount Amount Ref Cash flows from operating activities Receipts from customers Payment to suppliers & employees Operating expenses paid Cash generated from operations Interest paid Income taxes paid Net cash from operating activities Cash flows from investing activities Interest Received Purchase of Plant & Equipment Net cash used in investing activities Cash flows from financing activities Proceeds from Bank Over draft* Drawings Net cash used in financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period 106,300 (53,720) (17,864) W.N.1 W.N.2 W.N.3 34,716 (3,800)] (3,688) WN 5 27,228 40 (19,500) WN 6 (19,460) 6,402 (17,979) W.N.4 (11,577) (3,809) 5,009 -4000+1009 1,200 under U.S. GAAP, bank overdrafts are not cash or cash equivalents and are included in financing activities.W.N.1 Cash receipts from customers Opening Accounts Receivable Sales Closing alance Cash receipts from customers 4,500 107,000 5,200) 106,300 W.N.2 Cash paid to suppliers Opening Inventory Closing Stock COGS Purchase-CoGs+Closing inventory-opening inventory 18,000 28,000 45,200 55,200 Accounts payable ning Balance 2,800 55,200 280 4,000 Purchases Discount received Closing Balance Payments-(Opening Accounts Payable+Purchases-Closing Balance of Accounts Payable Payments 53,720 W.N.3 Expense payable Expense Payable Less Prepaid Opening Balance Expense for the year less Depreciation expense Closing Balance Payments-(Opening Payable+Expense-Closing Balance) Payments W.N.4 Capital 140 (net of prepaid, if any) 16,854 (16500+354) (870) (net of prepaid, if any 17,864 Opening Balance Net Income Less: Drawings Ending Balance Drawin WNS Income Taxes paid Income Tax Payable+Deferred Tax Liability Opening Balance Expense for the year Closing Balance Payments-(Opening Payable+Expense-Closing Balance) Payments- 49,769 32,688 17,979 64,478 17,979 1,200 3,378 890 3,688 WN 6 Opening Acc Dep Add: Dep expense Less: Acc Dep on Asset Sold Ending Acc Dep 17,600 5,400 0 23,000 Equipment Beginnin Less: Sold Add: Purchase Ending 64,000 0 19,500 83,500 Plug-in

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