Compute the cash flow amounts for morgan trading

Reference no: EM13216539

You are given the following financial statement extracts of Morgan trading ltd.

Statement of comprehensive income for the year ended 30 June 2014

Sales		$156,900
Cost of sales		$75,800
Gross profit		$81,100
Depreciation expense		$8,500
Interest expense	$3,400
Other expenses	$27,800	$39,700
Net profit before tax		$41,400
Income tax expense		$12,420
Net profit after tax		$28,980

Statement of financial position extract as at 30 June 2013 and 2014

		Yr 2013	Yr 2014
Current assets	Prepaid expenses (other)	$450	$780
	Accounts receivable	$8,760	$7,990
	Inventory	$17,630	$21,750
Current Liabilities	Accounts payable	$14,770	$12,980
	Accrued interest	$950	$730
	Income tax payable	$9,800	$12,420

REQIRED:

Using the indirect method, compute the following cash flow amounts for Morgan trading ltd. for the year ended 30^th June 2014.

A. Cash receipts from customers

B. Cash paid to suppliers and employees

C. Interest paid

D. Income tax paid

E. Net cash provided by operating activities

Reference no: EM13216539

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