Reference no: EM132554400

The Trial Balance of Nuqa Ltd is provided below

                                                                           2020                      2019

Bank Overdraft 60,000

Cash                                                      29,000                   0

Sales                                                       1,200,000          1,150,000

Cost of Goods Sold                                  800,000                 714,000

Insurance Expense                                   30,000                   27,000

Wages Expense                                        120,000                121,000

Doubtful Debts Expense                                 5,000                   4,000

Other Expenses                                            65,000               78,000

Accounts Payable                                           70,000             75,000

Accounts Receivable                                          90,000            88,000

Allowance for Doubtful Debts                               10,000            11,000

Inventory                                                          80,000          82,000

Accrued Wages                                                    12,000        10,000

Prepaid Insurance                                                 8,000          6,000

Plant & Equipment                                                550,000       600,000

Accumulated Dep. on Plant & Equip.                          125,000        110,000

Loan Payable                                                         150,000        130,000

Share Capital                                                           200,000         200,000

Retained Earnings                                                      10,000              0

Accumulated Losses                                                      0               26,000

Additional Information

Depreciation was $28,000 in 2019 and $25,000 in 2020. Loss on disposal in 2020 was $15,000.

Question 1: Calculate receipts from customers

Question 2: Calculate payments to suppliers

Question 3: Calculate payments to employees

Question 4: Calculate net investing cash flows

Question 5: Calculate financing cash inflows

Question 6: Calculate net profit for 2020

Question 7: Reconcile net profit with operating cash flows, using the direct method.

Question 8: Use your answer for (vii) to suggest two ways in which the company could improve its operating cash flows by managing current assets and liabilities.