CashFlow statements

Question 1

Statement of cashflows: Where do you start

Answer 1

When looking at statement of cashflows you always start at the bottom with :
Net increase in cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period

Note: Remember if there is a 0 when looking at cash and cash equivalents on the SFP look for Bank Overdraft

Question 2

Statement of financial position: Cashflows from Operating activities

Answer 2

Profit from operations 
Dividends received ( This is added back later to investing activities)
Depreciation
Interest Received
Loss/Gain on disposal

Question 3

Statement of financial position: Operating profit before WC changes

Answer 3

Increase/decrease in inventory
Increase/decrease in Trade Receivables
Increase/Decrease in Trade Payables

Note: look for anything saying cash was in one of these where it should not have been

Question 4

Statement of financial position: Cash generated from operating activities

Answer 4

Interest Paid= Balance b/f + Interest charged per SPL - balance c/f

Tax Paid= Liability b/f + Tax charge per SPL - liability c/f

Note these will both be negative figures as the are both charges

Question 5

Statement of financial position: Cashflows from Investing activities

Answer 5

Proceeds of PPE= Cost - accumulated depreciation = carrying value
Carrying value - loss on disposal = Proceeds of PPE

Purchase of PPE = Balance b/f - depreciation - disposal - balance c/f

Dividends Received ( This is the figure that was removed from the operating activities)

Question 6

Share capital / Share premium

Answer 6

This is the difference between both figures for beginning of period and both figures for end of period

Question 7

Long-Term borrowings

Answer 7

Bank loan:
Balance b/f
Balance c/f
And the difference is how much with have recieved