Reference no: EM132709871
Question - The information below relates to BB Traders for the year ended 30 June 2020.
Sales revenue 352,000
Accrued wages 15,000
Bank balance 1 July 2019 ($22,000)
Cash paid to suppliers 192,200
Cash receipts from customers 294,000
Payments to employees and for expenses 25,000
Bank loan received 6,600
Property taxes paid 20,000
Depreciation of equipment 45,600
Interest received 20,500
Cash received from sale of share market investments 55,000
Cash paid to purchase computer hardware 40,000
Issued shares in exchange for block of land 100,000
Dividends paid 29,000
Interest paid 30,000
Net profit after tax 76,000
Required -
a) Prepare BB Statement of Cash Flows for the year ended 30 June 2020.
b) What is the most important section in BB Statement of Cash Flow? Explain.