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25 March, 09:10

On January 1, 2018, Moore, a fast-food company, had a balance in its Cash account of $54,000. During the 2018 accounting period, the company had (1) net cash inflow from operating activities of $35,600, (2) net cash outflow for investing activities of $43,000, and (3) net cash outflow from financing activities of $24,500.

Required:

Prepare a statement of cash flows.

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  1. 25 March, 10:01
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    Net cash flow as at the year end = $22,100

    Explanation:

    The statement of cash flows for Moore shall be calculated as follows:

    Cash balance as at January 1, 2018 = $54,000

    Cash inflow from operating activities = $35,600

    Cash outflow from investing activities = ($43,000)

    Cash outflow from financing activities = ($24,500)

    Net cash flow as at the year end = $22,100
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