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Accounting - Topics - Case study - cash flow statements

Case study - Cash flow statements

Stevens Computer Sales has supplied the following list of transactions for
his business. The accounting period commenced 1 July 2002 and continues
until 30 June 2003

* Steven commenced business with $20 000 cash contribution to the
business

* Steven bought a motor vehicle for $15 000 cash on 31.12.2002

* the motor vehicle is to be depreciated at 10% per annum

* $8000 is borrowed. It is to be repaid by instalment at $2000 per annum

* cash sales are $65 000

* credit sales are $45 000 with $40 000 being received by the end of the
financial year from debtors

* wages paid are $37 500, with $2500 still owing

* Steven receives $600 per year from a magazine commission. To date he
has received $400

* rent is $200 per month and Steven has paid eleven months in this
financial year

* Steven bought $15 000 worth of computers and has sold $13 600 worth

* advertising is $2000 per quarter. In this financial year Steven has
paid $10 000

* other expenses total $13 000 and they have been paid in cash

a. Prepare a cash flow statement for the year ended 30.6.2003.

b. Prepare a Profit and Loss statement for the same period.

c. Prepare a balance sheet as at 30.6.2003.

Likely errors include failure to:

View the text document for solution to Stevens Computer Repairs.

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