Prepare a cash flow statement for the 30 June 2021 year based on the following:
Sales (net)
56,600
Cost of goods sold
31,400
Gross profit
25,200
Salaries expense
19,200
Depreciation expense
2,050
Interest expense
750
Other expenses (all cash)
1,000
Total operating expenses
23,000
Net income
2,200
Tax
660
You are also provided with an extract of the 30 June 2021 Balance Sheet account information. You ascertain the following:
2020
2021
Cash
1,900
5,100
Accounts receivable
14,200
10,000
Inventory
25,600
20,000
Accounts payable
7,500
Salaries payable
10,200
11,200
Tax payable
2,000
2,400
Interest expense of $750 was paid on 30 June 2021.
Required:
Prepare the operating activities section of the cash flow statement. Show full workings (20 marks)
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