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
* 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
* 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.
Previous | Next
Log in to save your progress and obtain a certificate in Alison’s free Diploma in Business and Legal Studies online course
Sign up to save your progress and obtain a certificate in Alison’s free Diploma in Business and Legal Studies online course
Please enter you email address and we will mail you a link to reset your password.