The following information about John Corp. applies to the entity for the year ending 30 June. Payment to suppliers Receipts from owners Receipts from long-term borrowing Payment of rates Payment of wages Purchase of land Repayment of long-term borrowing Receipts from customers Payment for equipment Depreciation on equipment REQUIRED 150 000 405 000 270 000 130 000 125 000 90 000 165 000 600 000 190 000 90 000 a) What was John Corp.’s cash flow from the following three (3) activities? o Operating Activities o InvestingActivities o FinancingActivities b) Explain the difference between the cash and accrual basis of accounting ?
The following information about John Corp. applies to the entity for the year ending 30 June. Payment to suppliers Receipts from owners Receipts from long-term borrowing Payment of rates Payment of wages Purchase of land Repayment of long-term borrowing Receipts from customers Payment for equipment Depreciation on equipment REQUIRED 150 000 405 000 270 000 130 000 125 000 90 000 165 000 600 000 190 000 90 000 a) What was John Corp.’s cash flow from the following three (3) activities? o Operating Activities o InvestingActivities o FinancingActivities b) Explain the difference between the cash and accrual basis of accounting ?
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter2: Financial Statements And The Annual Report
Section: Chapter Questions
Problem 2.5E: Classification of Assets and Liabilities Indicate the appropriate classification of each of the...
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The following information about John Corp. applies to the entity for the year ending 30 June.
Payment to suppliers
Receipts from owners
Receipts from long-term borrowing Payment of rates
Payment of wages
Purchase of land
Repayment of long-term borrowing Receipts from customers
Payment for equipment
REQUIRED
150 000 405 000 270 000 130 000 125 000
90 000 165 000 600 000 190 000
90 000
- a) What was John Corp.’s cash flow from the following three (3) activities?
o Operating Activities
o InvestingActivities
o FinancingActivities
- b) Explain the difference between the cash and accrual basis of
accounting ?
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