Cash flow formulas

Question 1

Income tax

Answer 1

BF + SPL - CF = Cash

Question 2

PPE addition

Answer 2

CF + Disposal + Depreciation - BF - Sub PPE = Addition

Question 3

Investment in associate (dividends rec)

Answer 3

BF + SPL - CF= Cash

SPL= shares of profit from associate
BF/CF= Investment in associate

Question 4

Goodwill impairment

Answer 4

BF + Sub goodwill - CF= impairment

Question 5

NCI (dividends paid)

Answer 5

BF + G% at Acq +SPL - CF = div paid

Acq= net assets x group %

Question 6

What is different about CSCF

Answer 6

Add line in section 2: ‘cash acquired/spent from sale of sub’ and ‘dividend rec for associate’

Add line in section 3: Dividend paid to NCI

Question 7

Cash generated from operating activities (7)

Answer 7

PBT
Less finance income
finance cost
depreciation/amortisation
Less gain on disposal
impairment
movement in inv, TR, TP

Question 8

Lease liability

Answer 8

CF - (BF + Additions + Interest exp) = Payment

Split payment by: payments - interest

payments- cash from op
interest- financing