Required: a) Based on the information given, prepare the section of cash flows statement for...
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Accounting
Required:
a) Based on the information given, prepare the section of cash flows statement for net cash flows from operating activities for the year ended 30 June 2022 for JasonJohnson company. Show your calculations for each item included in the section of the statement.
b) Prepare a reconciliation of net profit to net cash flows from operating activities
Question 2
The accounting records of JasonJohnson Company provided the data below for years ending 30 June 2022 and 30 June 2021:
2022
2021
$
$
Sales (all on credit) for the year
950,000
Cost of goods sold for the year
380,000
Discount provided to customers for early payment
3,500
Bad debts expense for the year
2,500
Depreciation expense
55,000
Net profit
509,000
30 June 2022
30 June 2021
$
$
Accounts receivable
160,000
140,000
Less: Allowance for doubtful debts
4,500
4,200
155,500
135,800
Inventory
88,360
62,200
Accounts payable
55,500
47,700
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