Prepare the cash flow statement for jerome ltd

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Reference no: EM132554516

On the 1st July 2019 Jerome Ltd recorded at Cash Balance of $500000 overdraft. The following transactions were undertaken by Jerome Ltd during the financial year ended 30 June 2020. Ignore GST.

Paid cash dividends of $240 000.
Sold a long-term government bond, with a carrying amount of $160 000, for $184 000, including $15 000 accrued interest.
Purchased shares in MBW Ltd to be held as an investment for $400 000 cash.
Paid off a long-term $320 000 loan. Interest paid on this loan $18 000.
Received sponsorship funding $220,000
Received from customers 1,172,000.
Issued ordinary shares for cash, $800 000.
Paid Wages to Employees $312,000
Purchased factory machinery, giving $110 000 cash and signing a mortgage loan for $400 000.
Issued 5% debentures to secure funding of $710 000.
Purchased land to be held for future expansion for $850 000 cash.
Income Tax paid $92,000.
Paid to Suppliers $679,000.

Question A. Prepare the Cash Flow Statement for Jerome Ltd if the Cash Balance at the beginning was an overdraft of ($500 000). Show each of the following sections:

  1. cash flow from Operating Activities
  2. Cash flow from investing activities 
  3. Cash flows from financing activities
  4. Cash balance at end of period

Reference no: EM132554516

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