Winton Ltd is unsure as to how to calculate the net GST cash flow to...
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Winton Ltd is unsure as to how to calculate the net GST cash flow to include in its Statement of Cash Flows for the year ended 31 March 2020. The NZ GST rate is 15%. To help your client, Winton Ltd, you requested and obtained the following account balances: 31/03/2020 31/03/2019 $8 235 $12 Cash | Accounts receivables Allowance for doubtful debts Inventory 282 6 7 156 160 10 Bank overdraft Accounts payable GST payable 240 | 330 40 60 Sales - credit Sales - cash COGS Doubtful debts expense 500 100 300 Required: (i) Calculate the net GST cash flow for Winton Ltd for the year ended 31 March 2020, and complete the cash flows from operating activities (CFOA) section to arrive at the 'cash gener- ated from operations' amount. Winton Ltd uses the direct method for CFOA. (ii) Reconstruct the Winton Ltd general ledger accounts in the Answer Booklet. Winton Ltd Statement of Cash Flows for the year ended 31 March 2020 Cash flows from operating activities: Cash generated from operations Accounts receivable GST inclusive GST exclusive GST inclusive Allow for DD $ GST payable
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