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Question - Sara Computer Sales (SAS) has supplied the following list of transactions for his business. The accounting period commenced 1 July 2019 and continues until 30 June 2020.
Sara commenced business with $20 000 cash contribution to the business
Sara bought a motor vehicle for $15 000 cash on 31.12.2002 & bought $15 000 worth of computers
$8000 is borrowed. It is to be repaid by instalment at $2000 per annum
Cash sales are $65 000 & Credit sales are $45 000 with $40 000 being received by the end of the financial year from debtors
Wages paid are $37 500
Sara receives $600 per year from a magazine commission. To date she has received $400
Rent is $200 per month and Sara has paid eleven months in this financial year and for Advertising she paid $10 000 & Other expenses total $13 000 and they have been paid in cash
Required - Prepare a cash flow statement for the year ended 30.6.2020. In preparing the report for the cash flow statement, classify cash inflows and outflows into
-Operating
-Investing
-Financing items
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