1. Prepare the statement of cash flows for Trinh’s Nail


Question Description:

35

1. Prepare the statement of cash flows for Trinh’s Nail Supplies for the year ended 30 June 2017, using the direct method. 2. Comment on the cash flow position of the entity as shown in the statement of cash flows. Accounting cash flow.docx The financial statements for the business of Trinh’s Nail Supplies for the past two years are presented below. TRINH’S NAIL SUPPLIES Comparative Income Statements TRINH’S NAIL SUPPLIES Comparative Statements of Financial Position Assessment Information COMMONWEALTH OF AUSTRALIA Copyright Regulations 1969 This material has been reproduced and communicated to you by or on behalf of Kaplan Business School pursuant to Part VB of the Copyright Act 1968 (‘Act’). The material in this communication may be subject to copyright under the Act. Any further reproduction or communication of this material by you may be the subject of copyright protection under the Act. Kaplan Business School is a part of Kaplan Inc., a leading global provider of educational services. Kaplan Business School Pty Ltd ABN 86 098 181 947 is a registered higher education provider CRICOS Provider Code 02426B. Additional information October 23, 2015 a. All purchases and sales of inventories are on credit. All purchases of office supplies are for cash. b. The bank overdraft is considered to be part of the entity’s cash management function. c. During the year ended 30 June 2017, the owner, Trinh, withdrew $12  800 in cash for personal use. d. The entity sold some fixtures for $1200 cash during the current year. These fixtures initially cost $4200 and had been written down to a carrying amount at the date of sale of $2000. e. Depreciation of fixtures has been included in ‘other expenses’ for the year ended 30 June 2017. All remaining other expenses were paid in cash. Required 1. Prepare the statement of cash flows for Trinh’s Nail Supplies for the year ended 30 June 2017, using the direct method. 2. Comment on the cash flow position of the entity as shown in the statement of cash flows. October 23, 2015 Read more

Answer

35