Reference no: EM132992336
Problem - The following are transactions of Marks and Company for year ending 30 June 2021:
Description $
Proceeds received from Bank loan 50,000
Proceeds of share issue 100,000
Payment for purchase of motor vehicle 90,000
Depreciation expense 22,000
Dividends paid 10,000
Sales revenue 800,500
Loss on sale of equipment 5,000
Proceeds from sale of equipment 40,000
Commission received in cash 3,050
Dividends received from investment 4,500
Employee salaries paid 355,000
Depreciation expense 13,600
Cash paid to suppliers 291,010
Cash collected from customers 800,500
Opening cash balance, 1 July 2020 40,000
Required -
a) Prepare the Statement of Cash flow for the end of the financial year, 30 June 2021 for Marks and Company.
b) Discuss and explain how the Statement of Cash Flow prepared in part a) is useful to Marks and Company?