Fran runs a small retail store. During the financial year ended 30 September 2019, Fran's store generated cash sales of £210,329. She paid £62,510 into the business bank account and withdrew £30,000 from cash for her personal living expenses. Cash at 1 October 2018 was £150 and cash at 30 September 2019 was £300. Fran pays cash for her purchases when these are delivered to the store. How much cash did Fran pay for purchases during the financial year ended 30 September 2019?

Question

Quizplus · Accepted Answer

Fran's cash payments for purchases can be calculated by considering the cash flow: Starting cash (£150) + Cash sales (£210,329) - Cash deposited (£62,510) - Cash withdrawn for personal use (£30,000) - Ending cash (£300) = Cash paid for purchases (£117,669).

Fran Runs a Small Retail Store