Solution-Prepare a cash flow statement for tea tree bakery

Prepare a cash flow statement for tea tree bakery

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Reference no: EM132986604

Question - Tea Tree Bakery had the following cash transactions over the financial year ending 30 June 2021. Opening cash balance, 1 July 2020, was $3,950, closing cash balance, 30 June 2021, was $4,220.

Transaction Amount Paid bank interest $395

Purchased delivery van $65,000

Paid supplies for inventory $60,080

Income Tax paid $2,250

Borrowed funds $30,000

Payment to employees $16,280

Sold motor vehicle $8,000

Cash sales $110,275

Drawings $4,000

Required -

a. Prepare a Cash Flow statement for Tea Tree Bakery for the year ending 30 June 2021 using the information provided.

b. Explain why depreciation is not included in the Cash flow Statement. Your answer should include an explanation of the difference between accrual and cash accounting.

Reference no: EM132986604

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Prepare a cash flow statement for tea tree bakery

Reference no: EM132986604

Reference no: EM132986604

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