Statement of Cash Flows Flashcards
What is cash?
cash on hand and demand deposits
What are cash equivalents?
short term, highly liquid investments readily convertible into known amounts
What are operating activities?
derived from principle revenue producing activities and other activities that aren’t investing or financial
What are investing activities?
cash flows from acquisition and disposal of NCAs and other investments not included in cash equivalents
What are financing activities?
cash flows from activities that result in changes to equity capital and borrowings, and dividends paid
What methods are used for cash flow?
Indirect and Direct
What is the starting profit?
Profit before tax
Add or subtract depreciation?
Add
Add or subtract gain/loss on sale of NCA?
Subtract/add
Add or subtract increase/decrease in inventories?
subtract/add
Add or subtract increase/decrease in trade receivables?
subtract/add
Add or subtract increase/decrease in trade payables?
add/subtract
Add or subtract finance charge?
add
How to calculate tax/interest paid?
B/f balance + expense + PAID = c/f balance
Add or subtract payment to acquire new NCA?
subtract
Add or subtract proceeds on disposal of NCA?
add
How to calculate proceeds on disposal?
Proceeds - (cost disposals - acc depn disposals) = profit/loss
How to calculate additions and is it positive or negative?
additions = c/f cost - b/f cost - disposal cost
negative
What do we do to depn and profit or loss on disposal under operating activities?
Reverse them
How to find proceeds from share issues?
From the increase in equity share capital + share premium between periods.
What is done to a bonus issue of shares?
Find the number of shares issued
Find its value
Deduct that value from opening balance
