Mei-ling has prepared the statement of financial position and income statement of Matcha & Coffee Cr


QUESTION :

Mei-ling has prepared the statement of financial position and income statement of Matcha & Coffee Creations Inc. for the first year of operations, but does not understand how to prepare the cash flow statement. The income statement and statement of financial position appear below. Recall that the company started operations on November 1, 2018, so all of the opening balances are zero.

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Additional information:

The company bought kitchen equipment (a commercial oven) for NT$29,000 on November 1, 2018, and signed a N T $12,000 note payable to help pay for it. The terms provide for semiannual fixed principal payments of NT$2,000 on May 1 and November 1 of each year, plus interest of 5%. All other furniture, fixture, and equipment were purchased during the year for cash.

Recall that the company originally issued 25,930 ordinary shares for NT$25,930, of which 750 shares were repurchased from the lawyer for NT$500.

Recall that the company declared a semiannual dividend to the preference shareholders on April 30, and the dividend was paid on June 1. The second semiannual dividend was declared to the preference shareholders on October 31, to be paid on December 1.

Prepaid expenses relate only to operating expenses.

MATCHA & COFFEE CREATIONS INC. Income Statement Year Ended October 31,2019 Sales revenue Cost of goods sold Gross profit Operating expenses $462,500 231,250 231,250 92,500 3,900 987 Salaries and wages expense Depreciation expense Other operating expenses Income from operations Other expenses 32,387 98,863 413 98,450 Interest expense Income before income tax Income tax expense Net income 690 78,760

Using the information, income statement and financial position above to answer these questions:

(1) How much net cash flow can Matcha & Coffee Creations Inc. provide by its operating activities for the year ended October 31, 2019?

(2) How much cash does Matcha & Coffee Creations Inc. receive from customers?

(3) How much cash does Matcha & Coffee Creations Inc. pay to suppliers?

(4) How much net cash flow can Matcha & Coffee Creations Inc. provide by its investing activities for the year ended October 31, 2019?

(5) How much net cash flow can Matcha & Coffee Creations Inc. provide by its financing activities for the year ended October 31, 2019?

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