Reference no: EM132572780
Question - The cash flows shown below were extracted from the accounts of Jason Taylor, a music shop owner.
1. Repayment of loan $390 000
2. Sale of property 390 000
3. Interest received 1 560
4. Payment to employees 78 000
5. Receipts from customers 273 000
6. Expenses paid 23 400
7. Computer equipment purchase 23 400
8. GST paid 780
9. Payments to suppliers 156 000
10. Income taxes paid 3 120
11. Beginning cash balance 7 800
Required -
A. Prepare a statement of cash flows using the direct method.
B. Outline some cash flow warning signals.