Question 5
POST_UTME_LAUTECH
•
2022
•
ACCOUNTING
•
objective
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, and Common Stock ₦100,000. Prepare a statement of cash flows.
Answer Options
A.
{\begin{tabular}{|l|l|} \hline \textbf{Cash Flows from Operations} & \textbf{₦} \\ \hline \text{Net Income} & 50,000 \\ \text{Depreciation} & 50,000 \\ \text{Total Cash Flows from Operations} & 100,000 \\ \hline \end{tabular}}
B.
{\begin{tabular}{|l|l|} \hline \textbf{Cash Flows from Investing} & \textbf{₦} \\ \hline \text{Purchase of Equipment} & 50,000 \\ \text{Sale of Equipment} & 50,000 \\ \text{Total Cash Flows from Investing} & 0 \\ \hline \end{tabular}}
C.
{\begin{tabular}{|l|l|} \hline \textbf{Cash Flows from Financing} & \textbf{₦} \\ \hline \text{Issuance of Common Stock} & 100,000 \\ \text{Dividends Paid} & 50,000 \\ \text{Total Cash Flows from Financing} & 50,000 \\ \hline \end{tabular}}
D.
{\begin{tabular}{|l|l|} \hline \textbf{Cash Flows from Operations} & \textbf{₦} \\ \hline \text{Net Income} & 50,000 \\ \text{Depreciation} & 50,000 \\ \text{Total Cash Flows from Operations} & 100,000 \\ \hline \end{tabular}}
About This Question
This is
Post Utme Lautech
2022
Accounting
Question 5.
It is one of the
objective
questions from the
2022
Post Utme Lautech
Accounting
examination.