Question

Presented below is information for the Hudson Partnership for the year ended 31 Decembe2019. Use the information to prepare a statement of cash flows. Cash balance, 31 December 2019 $51 618 Cash paid to employees and suppliers 220 013 Cash received from sale of land 38 079 Cash paid as GST 16 924 Cash received from debentures 25 386 Cash paid to purchase truck 30 000 Cash balance, 1 January 2019 38 925 Cash paid a drawings 53 311 Cash received from customers 279 247 Cash received as interest 6 770 Cash paid for interest 4 231 Cash paid to purchase equipment 12 310

Answer 1

Solution:

HUDSON PARTNERSHIP
Statement of Cash Flows
For the Year Ended December 31,2019
Cash flow from operating activities:
Collections from customers	$          279,247
Payment for employees and supplies	$       (220,013)
Payment to Interest	$            (4,231)
Payment to GST	$          (16,924)
Net Cash flow from operating activities (A)		$     38,079
Cash flow from investing activities:
Cash Received from sale of land	$            38,079
Cash paid for purchase truck	$          (30,000)
Cash paid for purchase equipment	$          (12,310)
Cash received for interest	$              6,770
		$       2,539
Net cash flow from investing activities (B)
Cash flow from financing activities:
Cash received from debenture	$            25,386
Cash paid for drawings	$          (53,311)
Net Cash flow from financing activities (C )		$   (27,925)
Net increase(decrease) in cash		$     12,693
Beginning cash balance		$     38,925
Ending cash balance		$     51,618