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Financial Forensics · Quiz 1 · 7 Jul 2024 · May 2024 term

Question 27: The owner of small business has asked you to prepare a s…

Question 27

+1 markNumerical answer

The owner of small business has asked you to prepare a statement that will show him where his firm's cash came from and how it was used this year. He gives you the following information based on the cash account in his general ledger:

Cash balance at the Beginning of year₹3,450
Collection of account receivable₹34,500
Interest on savings account₹345
Sale of old machine₹3,105
Cash sales₹27,600
Total₹69,000
Payment on Vendor accounts₹17,250
Cash purchase of supplies₹345
Cash purchase of inventory₹17,250
Down payment on new truck₹3,450
Rent Payment₹8,625
Utilities₹2,070
Interest payment₹1,035
Salary₹1,725
Payment of debt₹3,450
Part-time help₹6,900
Total₹62,100

In addition, the following is available from the company records

  • Sales were INR 61,410 for the year
  • Accounts Payable decreased by a net of INR 2,760 during the year
  • Inventory balance remained constant throughout the year

Based on the above data, answer the given subquestions

What is the cash flow from Operations?

Show answer

Correct answer: 7935

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Question 27 of 29 in the IIT Madras BS Financial Forensics (Financial Forensics) Quiz 1 paper sat on 7 Jul 2024, in the May 2024 term (IIT M DEGREE AN EXAM QDB2 7 July 2024). It carries 1 mark.

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