CHAPTER 7 Statement of cash flows 309vi. Salaries accrued, $4000
vii. Machine purchased, $2000 cash
viii. Depreciation expense, $500
ix. Dividends declared, $950
x. Rent received, $1000
xi. Declared dividends paid, $950
xii. Lease paid, $1500.
Required
a. Indicate the effect on the balance sheet categories only in the following format.Transaction
number CashOther current
assetsNon-current
assetsCurrent
liabilitiesNon-current
liabilities Equityb. State, for the transactions affecting cash, whether they relate to an operating, investing or
financing activity.7.19 LO3
Compute the cash from operations in each of the following cases (A and B). All sales and purchases
are made on credit.
A B
Sales revenue
Depreciation expense
Cost of sales
Other expenses
Dividends paid$50 000
6 000
30 000
3 000
12 000$ 70 000
10 000
76 000
1 400Increase/(decrease) in:
Inventories
Accounts receivable
Prepayments
Accounts payable
Other current liabilities10 000
7 000
(1 000
(30 000
16 000)
)(20 000
2 000
(2 000
9 000
(20 000)))7.20 LO3
The cash flows below were extracted from the accounts of Ryan Smith, a music shop owner.
Repayment of loan
Sale of property
Interest received
Payments to employees
Receipts from customers
Expenses paid
Computer equipment purchase
GST paid
Payments to suppliers
Income taxes paid
Beginning cash balance$390 000
390 000
1 560
78 000
273 000
23 400
23 400
780
156 000
3 120
7 800Required
Prepare a statement of cash flows using the direct method.7.21 LO2
Ben Burton Pty Ltd has the following items in its accounts:
- Bank interest paid
- Loan repaid
- Cash purchase of fixed asset
- Sale of goods on credit
- Taxation payable
- Receipts from share capital issue