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Balance Sheet 2008 2009 Cash flow Statements Cash flow Statement

$ $ for 2009 (Direct Method) for 2009 (Indirect Method)


Assets Cash flow from operating activities Reconciliation of net profit and cash
Cash at Bank 45,000 55,000 Cash receipts from customers flow from operating activities
Government Bond 5,000 10,000 Cash paid to suppliers net profit
Prepayment-Insurance 1,000 1,500 Cash paid to employees Adjusting for:
Accounts Receivable 7,600 8,000 Interest expense AR
Inventory 4,800 5,600 Total Prepayment
Land 100,000 100,000 Inventory
Building 50,000 50,000 CF-investing AP
Accumulated Depreciation - Building -10,000 -11,000 Government bond Accrued wages
Photocopier 5,000 0 Sale of motor van Add back:
Accumulated Depreciation - photocopier -2,000 0 interest received Dep'n expense
206,400 219,100 Total Loss on sale of copier
deduct interest income
Liabilities & Equity CF-Financing CF-Operating
Accounts Payble 4,700 6,800 New issue of shares
Accrued wages 3,000 4,000 dividends paid CF-investing
Long-term Loan 130,000 80,000 Repay loans Government bond
Equity 68,700 128,300 Total Sale of motor van
206,400 219,100 interest received
Cash Bal b/d 0
Total cash inflow/outflow
Income Statement for 2009 Cash Bal c/d CF-Financing
$ $ New issue of shares
Sales revenue 142,400 dividends paid
Less Cost of Goods Sold 40,500 Repay loans
Gross Profit 101,900 0
Photocopier reconciliation
Add other income: interest received 200 Cost 5000 Cash Bal b/d 45,000
Less other expenses Dep'n 2000 Total cash inflow/outflow
Interest expense 10,000 Carrying 3000 Cash Bal c/d
Loss on sale of motor van 1,000 Proceed 2000
Depreciation of photocopier 500 Loss on sale -1000
Depreciation of building 1,000
Wages 27,000
Insurance expense 8,000 Other information
Other expenses 10,000 57,500 Dividends paid 5000
Net Profit 44,600 issue of New shares by cash 20,000