Faith Is Developing a Statement of Cash Flows for Yummy

question 5

Essay

Faith is developing a statement of cash flows for Yummy Gummies, a candy company that she owns.She has a net profit of R15 000 and an increase in inventory of R7 500.She took out a line of credit with her bank to finance her business and has decreased trade receivables by R4 000.She has also invested in equipment for shaping her candy.How will the above information be listed on the statement of cash flows?

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Definitions:

Market Price

Market Price is the current price at which an asset or service can be bought or sold in a competitive marketplace.

Treasury Bond

A long-term, interest-bearing security issued by the U.S. government, considered one of the safest investments due to government backing.

Par Value

The face value of a bond or stock as stated by the issuing company, which does not necessarily match its market value.

Newspaper Quote

Financial information, including stock prices, dividend data, and market analysis, traditionally published in newspapers.