Reference no: EM133048675

Questions -

a. Flash Limited had the following cash flows during the reporting period:

Purchase of intangibles $80,000

Proceeds from sale of plant $36,000

Receipts from customers $853,000

Payments to suppliers $696,000

Interest received $36,500

Income taxes paid $57,000

Calculate the net cash flows from operating activities.

b. Bamboo Co. Limited had a profit after tax of $75,000 for the financial year. Included in this profit was:

Depreciation expense of $22,000

Gain on sale of investments of $6,000

Also, accounts receivable increased by $26,000 and inventories decreased by $8,000.

Calculate the cash flow from operating activities during the year.

c. The following information was extracted from the records of Vincent Limited:

Opening balance of machinery: $840,000

Closing balance of machinery: $960,000

Cost of new machinery: $240,000

Proceeds from sale of machinery: $48,000

(Cost $120 000; Carrying amount $40,000)

Calculate the total cash flows from investing activities.

d. A company reported the following information for a financial year:

Profit from ordinary activities before income tax expense 264,000

Income tax expense 70,000

Depreciation expense 24,000

Issue of shares 120,000

Loan made to another company 24,000

Increase in accounts receivable 8,000

Decrease in inventories 12,000

Cash received from loans receivable 4,000

Dividends paid 16,000

i. What is the net cash inflow (outflow) from investing activities?

ii. What is the net cash inflow (outflow) from financing activities?

iii. What is the net cash inflow from operating activities?

e. During the financial year Delilah Limited had sales of $284,000. The opening balance of accounts receivable was $36,000, and the closing balance was $45,000. Bad debts amounting to $2,600 were written off during the period.

i. Calculate the cash receipts from sales during the year.

ii. Calculate the cash receipts from customers during the year.