Reference no: EM132554452

Dellaway House Ltd presents you with the following information at 30th June, 2020. Ignore GST.

Income Taxes Paid $22182

Purchase of New Building for cash $88000 and issued a mortgage for $112000

Collections from customers $121570

Proceeds from the issue of more shares $52000

Interest Received on Investments $18750

Paid to suppliers $98000

Dividends Paid $28000

Proceeds from sale of equipment with a carrying amount of $90000 for cash $51780

Received Government Subsidy in cash $50000

Borrowed money from the AZT Bank $60000. Interest Paid on Loan to date $4578

Paid $52460 to employees for Wages

Purchased shares in ABC Ltd $35000

Required

Question A. Prepare the Cash Flow Statement for Dellaway House Ltd if the Cash Balance at the

beginning was $12500. Show each of the following sections:

cash flow from Operating Activities

Cash flow from investing activities

Cash flows from financing activities

Cash balance at end of period

Question B. Write a brief report evaluating the cash flows from each of the business's activities and comment on the overall cash position of the business.

Question C. What is the inter relationship between:

the profit figure in the Income Statement and

the Cash Flow Statement and the Balance Sheet?