A-AS Level (CIE) Accounting Paper-3: Specimen Questions with Answers 17 - 18 of 50

Calculate cash from operating activities from the following balances:

Current Assets and Current liabilities

Current Assets and Current Liabilities

	1992	1993
Debtors	80,000	60,000
Bills receivable	7,000	10,000
Creditors	50,000	55,000
Bills payable	8,000	6,000
Outstanding expenses	1,000	1,500
Prepaid expenses	1,800	1,600
Accrued income	800	900
Income received	700	-

Operating profit before working capital changes was $ 1,00, 000

Answer

c.

Explanation

Current Assets and Current Liabilities

Operating profit before working capital changes Add: Decrease in assets: Debtors Prepaid expenses Add: Increase in current liabilities: Creditors Outstanding expenses Less: Increase in current assets: Bills receivable Accrued income Less: Decrease in current liabilities: Bills payable Income received in advance Net cash from Operating Activities

$ 20000 200 5000 500 3000 100 2000 700

$ 1,00, 000 25,700 12,25, 700 5800 1,19, 000

A, B and C started a business by investing $ 1, 20, 000 1,35, 000 and 1,50, 000. Find the share of each partner from the annual profit of $ 56700?

Answer

a.

Explanation

Their profit-sharing ratio as per their capital

Thus, the answer is 16800,18900, 2100.