The Following Information Is Produced on an Accrual Basis and Relates

question 49

Essay

The following information is produced on an accrual basis and relates to Emily's Superior Photo Framers.
Statement of comprehensive income for the year ended 31 December 2018 Additional Information:
• Emily withdrew $25,000 through the year for her own use.
• No photo framing equipment was sold during the year.
REQUIRED:
a)Prepare a classified statement of cash flows for the year ended 31 December 2018 from the above information. Show all workings.
b)Prepare a statement reconciling profit with cash flow from operating activities.
c)Comment on what the statement of cash flows reveals about the cash situation of Emily's Superior Photo Framers.

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Definitions:

Direct Marketing

A type of advertising strategy that targets individuals or groups directly with personalized messages in order to generate responses or transactions.

Telemarketing

The process of marketing goods or services to potential customers over the telephone.

E-mail

A process for sending digital communications across the Internet between individuals utilizing electronic devices.

Direct Mail

A form of marketing that involves sending physical promotional materials directly to potential customers.