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Question 2| Simone Gabby owns and operates Simone's Shoes, a small business that prepares reports on a monthly basis. The Cash Journals for August 2019 appear as follows. Cash Receipts Journal (summary) Disc. Accounts Date Details Rec. Bank Sales Sundries GST Еxp. Receivable 31/08 Totals 13 783 7 700 5 670 154 567 Cash Payments Journal (summary) Disc. Аccounts Date Details Chq. Bank Inventory Wages GST Sundries Rev. Payable 31/08 Totals 18 030 2 200 2 730 9 547 597 44 3 000 The items in the Sundries column include: Advertising $540 Drawings $5 000 Freight Inwards $440 Freight Outwards $190 GST Settlement $927 Interest Expense $150 Loan – ANZ Bank $500 Rent $1 800 a. Prepare the Net Cash Flow from Operations extract from the Cash Flow Statement for the month ending 31 August 2019. b. Explain how Simone's Shoes' Income Statement for the month ended 31 August 2019 reported a Net Profit yet the Cash Flow Statement reported a Net Decrease in Cash for the same period.

Question 2| Simone Gabby owns and operates Simone's Shoes, a small business that prepares reports on a monthly basis. The Cash Journals for August 2019 appear as follows. Cash Receipts Journal (summary) Disc. Accounts Date Details Rec. Bank Sales Sundries GST Еxp. Receivable 31/08 Totals 13 783 7 700 5 670 154 567 Cash Payments Journal (summary) Disc. Аccounts Date Details Chq. Bank Inventory Wages GST Sundries Rev. Payable 31/08 Totals 18 030 2 200 2 730 9 547 597 44 3 000 The items in the Sundries column include: Advertising $540 Drawings $5 000 Freight Inwards $440 Freight Outwards $190 GST Settlement $927 Interest Expense $150 Loan – ANZ Bank $500 Rent $1 800 a. Prepare the Net Cash Flow from Operations extract from the Cash Flow Statement for the month ending 31 August 2019. b. Explain how Simone's Shoes' Income Statement for the month ended 31 August 2019 reported a Net Profit yet the Cash Flow Statement reported a Net Decrease in Cash for the same period.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 2| Simone Gabby owns and operates Simone's Shoes, a small business that prepares reports on a monthly basis. The Cash Journals for August 2019 appear as follows. Cash Receipts Journal (summary) Disc. Accounts Date Details Rec. Bank Sales Sundries GST Еxp. Receivable 31/08 Totals 13 783 7 700 5 670 154 567 Cash Payments Journal (summary) Disc. Аccounts Date Details Chq. Bank Inventory Wages GST Sundries Rev. Payable 31/08 Totals 18 030 2 200 2 730 9 547 597 44 3 000 The items in the Sundries column include: Advertising $540 Drawings $5 000 Freight Inwards $440 Freight Outwards $190 GST Settlement $927 Interest Expense $150 Loan – ANZ Bank $500 Rent $1 800 a. Prepare the Net Cash Flow from Operations extract from the Cash Flow Statement for the month ending 31 August 2019. b. Explain how Simone's Shoes' Income Statement for the month ended 31 August 2019 reported a Net Profit yet the Cash Flow Statement reported a Net Decrease in Cash for the same period.
Transcribed Image Text:Question 2| Simone Gabby owns and operates Simone's Shoes, a small business that prepares reports on a monthly basis. The Cash Journals for August 2019 appear as follows. Cash Receipts Journal (summary) Disc. Accounts Date Details Rec. Bank Sales Sundries GST Еxp. Receivable 31/08 Totals 13 783 7 700 5 670 154 567 Cash Payments Journal (summary) Disc. Аccounts Date Details Chq. Bank Inventory Wages GST Sundries Rev. Payable 31/08 Totals 18 030 2 200 2 730 9 547 597 44 3 000 The items in the Sundries column include: Advertising $540 Drawings $5 000 Freight Inwards $440 Freight Outwards $190 GST Settlement $927 Interest Expense $150 Loan – ANZ Bank $500 Rent $1 800 a. Prepare the Net Cash Flow from Operations extract from the Cash Flow Statement for the month ending 31 August 2019. b. Explain how Simone's Shoes' Income Statement for the month ended 31 August 2019 reported a Net Profit yet the Cash Flow Statement reported a Net Decrease in Cash for the same period.
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