Reference no: EM132812368
Tennis England Ltd- Annual total sales is 62 million.
Opening inventory is 270,000. Closing inventory is $125,000.
Variable cost of production is $400,000.
Other variable costs are $45,000 Administration Department, 685,000 Sales Department, $65,000 Finance Department. Fixed costs amount to f85,000 per year. Fixed overhead absorbed each year is $70,000 but this is over-absorbed by $20,000.
In respect to cash flows the anticipated flows in the year were as follows:
Cash generated from operations E245,000,
Interest paid $8,000,
Tax paid $21,000,
Dividends paid $45,000,
Purchase of property $55,000,
Decrease in long-term borrowings $35,000.
Cash and cash equivalents at the start of the year was 120,000 and at the end of the year is $170,000.
Problem 1: Cash flow statement needs to be prepared.