Answer:
Peak Heights Company
Cashflow Statement (Extract)
Cashflow from Operating Activities
Cash Receipts from Customers $94500
Cash paid to Suppliers and Employees ($25450)
Cash Generated from Operations $0
Net Cashflow from Operating Activities $69050
Explanation:
Cash Receipts from Customers
Open a Trade and Other Receivables - T Account and the balancing figure is the cash receipts from customers
Opening Accounts Receivables $ 12000(debit)
Sales for the Year $ 93000
Closing Accounts Receivables$10500(credit)
Bank (Balancing Figure) $ 94500 (credit)
Therefore Cash Receipts from Customers is $94500
Cash paid to Suppliers and Employees
Sales $ 93,000
Less Cost of goods sold $ 51,875
Gross Profit $ 41,125
Less Net income $ 23,125
Expenses $18,000
<em />
<em>Calculation for Cash Expenses (</em>Suppliers and Employees)
Expenses $18,000
Add Depreciation expense $6,000
Add Increase in Accounts payable(2250-800) $1,450
Cash paid to Suppliers and Employees $25450
