Question

ash paid to acquire plant assets 25,000 Proceeds from short-term borrowing 10,000 Loans made to borrowers 3,300 Collections on loans (excluding interest) 4,000 Interest and dividends received 31,300 Cash received from customers 845,000 Proceeds from sales of plant assets 9,000 Dividends paid 43,000 Cash paid to suppliers and employees 604,000 Interest paid 19,000 Income taxes paid 71,000 Using this information, prepare a statement of cash flows under direct method. (List any deduction in cash and cash outflows as

Answer 1

Answer-

STATEMENT OF CASH FLOWS (USING DIRECT METHOD)
FOR THE YEAR ENDED
Particulars		Amount
		$
Cash flow from operating activities
Cash receipts from customers		845000
Cash paid to suppliers and employees		-604000
Interest & dividends received		31300
Interest paid		-19000
Income taxes paid		-71000
Net cash flow from operating activities (a)		182300
Cash Flow from Investing activities
Cash paid for plant assets		-25000
Sale of plant assets		9000
Net cash Flow from Investing activities (b)		-16000
Cash Flow from Financing activities
Proceeds from short-term borrowing		10000
Loan made to borrowers		-3300
Collection on loans		4000
Dividends paid		-43000
Net cash Flow from Financing activities (c)		-32300
Net Change in cash c=a+b+c		134000