BS

Started business with cash

10 Loan take
purchased Plant for cash
Purchased stock for cash
expenses paid
sold all stock on credit
Dep
interest paid
tax

100000
50000
20000
50000
20000
100000
10000
5000
30%

IS

capital
loan
Rserves

100000
50000
10500
160500

Plant
stock
Debtors
CIH

10000
0
100000
50500
160500

sales
Expenses
COGS
dep
interest

PBT
Tax
PAT

IS

CFS
100000
20000
50000
10000
5000
85000
15000
4500
10500

capital
loan
Plant
stock
expenses
sales
interest
tax

CIH

100000
50000
150000
20000
50000
20000
0
5000
4500
99500
50500

CFF

CFS
145000

CFI

-20000

CFO

-74500
50500

Indirect method of determining CFO

PAT
Add
Dep
Interest
less
Credit sales

Direct method of determining CFO

Receipts
payments
Stock
Expense
tax

of determining CFO
10500
10000 non cash
5000 non operating
-100000 Change in WC
-74500

of determining CFO
0
50000
20000
4500
-74500