ATAR Notes: Forum
Archived Discussion => 2010 => Mid-year exams => Exam Discussion => Victoria => Accounting => Topic started by: 99.95 on June 08, 2010, 08:34:19 pm
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is this right:
operating activities
receipts from debtors 645000
sales 290000
GST received on sales 29000 964000
payments to creditors (340000)
purchases of stock (280000)
wages (246000)
GST paid on purchase (31000)
accrued wages (2000)
prepaid advertising (38000)
interest on loan (1500) (938500)
net operating cash flow 25500
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I didn't have that.
You forgot to minus the discount revenue for payments to creditors
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is this right:
operating activities
receipts from debtors 645000
sales 290000
GST received on sales 29000 964000
payments to creditors (340000)
purchases of stock (280000)
wages (246000)
GST paid on purchase (31000)
accrued wages (2000)
prepaid advertising (38000)
interest on loan (1500) (938500)
net operating cash flow 25500
weren't you meant to deduct discount revenue from creditors?
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i remember getting a net operating cash flow of 24 000 i think.
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I didn't have that.
You forgot to minus the discount revenue for payments to creditors
ahh poo! just realised i forgot to do that too!
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I didn't have that.
You forgot to minus the discount revenue for payments to creditors
oh crap.... what would i get out of 6?
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5.
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-1 for the same mistake
I would've put interest expense as the title for interest
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5.
fewf..... u serious?
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-1 for the same mistake
I would've put interest expense as the title for interest
what if i just put loan-interest? is this right?
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for this question the total cash received for the year is 645000+290000+29000+100000-3000= 1061000?
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That's correct
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how bout this question the bussiness reported a net profit but also reported a net outflow of cash from operating activities.
I wrote: net cash flow and net profit are measuring two different things. Net cash flow is measuring the profit which occurs through cash transactions while net profit measures overall profit from both cash and non-cash transactions.
Example 1: receipts from debtors is greater than sales
Example 2: discount revenue and discount expense is excluded from calculating net cash flow
what would i get out of 4?
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I put under accrual accounting there is a difference between revenues earned and received and expenses paid and incurred. Cash and profit are therefore different resources.
Example 1: receipts from debtors less than credit sales
Example 2: GST paid exceeds GST received. Gst has no effect on profit.
wait, did the question ask how a firm can make a profit and suffer a negative bank balance or the other way around?
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Example 1: Purchase of a NCA - Small effect of Expense, big effect on cash
Example 2: Drawings - effect cash, not net profit.
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Example 1: Purchase of a NCA - Small effect of Expense, big effect on cash
Example 2: Drawings - effect cash, not net profit.
No no no no. :(
It says operating cash flows. Neither of them are operating cash flows
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Example 1: Purchase of a NCA - Small effect of Expense, big effect on cash
Example 2: Drawings - effect cash, not net profit.
but it said operating activities.
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Example 1: Purchase of a NCA - Small effect of Expense, big effect on cash
Example 2: Drawings - effect cash, not net profit.
No no no no. :(
It says operating cash flows. Neither of them are operating cash flows
Hmmm that would be annoying... it didn't specify cash, it just said operating activities... maybe... eh
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Example 1: Purchase of a NCA - Small effect of Expense, big effect on cash
Example 2: Drawings - effect cash, not net profit.
but it said operating activities.
isnt purchase of NCA put in investing activities and drawings put in financing?
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Example 1: Purchase of a NCA - Small effect of Expense, big effect on cash
Example 2: Drawings - effect cash, not net profit.
but it said operating activities.
isnt purchase of NCA put in investing activities and drawings put in financing?
yep... helps if I read the question properly. :\
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Example 1: Purchase of a NCA - Small effect of Expense, big effect on cash
Example 2: Drawings - effect cash, not net profit.
No no no no. :(
It says operating cash flows. Neither of them are operating cash flows
Hmmm that would be annoying... it didn't specify cash, it just said operating activities... maybe... eh
Either way they're not operating activities.
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Credit sales > cash received
Accrued expenses
are these examples valid?
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What about prepaid exp > exp incurred?
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What about
Accrued Wages Paid - decreases cash but no effect on net profit
and
Stock Gain - increase net profit but has no effect on cash flows
?
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What about
Accrued Wages Paid - decreases cash but no effect on net profit
and
Stock Gain - increase net profit but has no effect on cash flows
?
pretty sure the first point is correct, don't know about the stock gain though...
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stock gain is not operating
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stock gain is not operating
yeah..stock gain is not a cash flow so they probably won't accept it.
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how about: payments to creditors and cash purchases of stock is greater than cost of sales?
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yeah they should be fine, they are classed as operating