The following information about Melbourne Corp. applies to the entity for the year ended 30 June. Payment to suppliers 170 000 Receipts from owners 399 000 Receipts from long-term borrowing 365 000 Payment of rates 150 000 Payment of wages 130 000 Purchase of land 120 000 Repayment of long-term borrowing 185 000 Receipts from customers 620 000 Payment for equipment 200 000 Depreciation on equipment 110 000 Required: a) What was Melbourne Corp.’s cash flow from the following activities? Operating activities Investing activities Financing activities b) In your own words, outline and briefly discuss some cash-flow warning signals.
The following information about Melbourne Corp. applies to the entity for the year ended 30 June. Payment to suppliers 170 000 Receipts from owners 399 000 Receipts from long-term borrowing 365 000 Payment of rates 150 000 Payment of wages 130 000 Purchase of land 120 000 Repayment of long-term borrowing 185 000 Receipts from customers 620 000 Payment for equipment 200 000 Depreciation on equipment 110 000 Required: a) What was Melbourne Corp.’s cash flow from the following activities? Operating activities Investing activities Financing activities b) In your own words, outline and briefly discuss some cash-flow warning signals.
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter16: Statement Of Cash Flows
Section: Chapter Questions
Problem 21E
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The following information about Melbourne Corp. applies to the entity for the year ended 30 June.
Payment to suppliers
170 000
Receipts from owners
399 000
Receipts from long-term borrowing
365 000
Payment of rates
150 000
Payment of wages
130 000
Purchase of land
120 000
Repayment of long-term borrowing
185 000
Receipts from customers
620 000
Payment for equipment
200 000
110 000
Required:
- a) What was Melbourne Corp.’s cash flow from the following activities?
Operating activities
Investing activities
Financing activities
- b) In your own words, outline and briefly discuss some cash-flow warning signals.
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