Reference no: EM132568236
Question - 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.
1. Paid cash dividends of $240 000.
2. Sold a long-term government bond, with a carrying amount of $160 000, for $184 000, including $15 000 accrued interest.
3. Purchased shares in MBW Ltd to be held as an investment for $400 000 cash.
4. Paid off a long-term $320 000 loan. Interest paid on this loan $18 000.
5. Received sponsorship funding $220,000
6. Received from customers 1,172,000.
7. Issued ordinary shares for cash, $800 000.
8. Paid Wages to Employees $312,000
9. Purchased factory machinery, giving $110 000 cash and signing a mortgage loan for $400 000.
10. Issued 5% debentures to secure funding of $710 000.
11. Purchased land to be held for future expansion for $850 000 cash.
12. Income Tax paid $92,000.
13. Paid to Suppliers $679,000.
Required - 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