Statement of Cash flows

Question 1

What are the 3 Sections of Cash Flow statement?

Answer 1

• Cash flows from operating activities
• Cash flows from investing activities
• Cash flows from financing activities

Question 2

How to set out Cash flow statement?

Answer 2

Down the left hand side there should be:
- Cash flows from operating activities
- Cash flows from investing activities
- Cash flows from financing activities

Question 3

What comes under operating activites?

Answer 3

• Operating profit
• Adjustments for depreciation
• Loss/ gain on disposal of non-current assets
• Decrease in inventory
• Increase in trade payables
• Interest paid
• Taxation paid

Question 4

What comes under investing activities?

Answer 4

• Purchase of investment
• Sale of investment
• Purchase of non-current assets
• Proceeds from sale of non-current assets
• Interest received

Question 5

What comes under financing activities?

Answer 5

• Issue of share capital
• Repayment of debentures
• Repayment of bank loan
• Dividend paid