Statement Of Cashflows

Question 1

What are the 4 headings in the statement of cash flows

Answer 1

Cashflows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Reconciliation of cash and cash equivalents

Question 2

What are the line items for Cashflows from Operating Activities

Answer 2

Profit before tax (P/L) X
Interest expense. X
Interest/investment income. (X)
Depreciation/Impairment. X
(Profit)Loss on Disposal of PPE (X)/X
Other non cash items (X)/X
(Increase)Decrease in Inventory (X)/X
(Increase)Decrease in Traade Receivables (X)/X
Increase(Decrease) in Trade Payables X/(X)
-Cash Generated from Operations
Interest Paid (X)
Income tax Paid (X)
-Net Cashflows from Operating Activities

Question 3

What are the line items for Cashflows from Investing Activities

Answer 3

Investment/Interest income. X
PPE additions. (X)
PPRE disposal X
Receipt of government grants X
Net Cashflows from Investing Activities

Question 4

What are the line items for Financing Activities

Answer 4

Share issues (premium+capital Y2-Y1) X
New bank loans X
Lease Liabilities Repaid (X)
Dividends Paid (X)

Question 5

What are the line items for reconciliation of Cash and Cash Equivalents

Answer 5

Changes in Cash and Cash Equivalents (balancing figure/subtotal of 3)
Opening Cash and Cash Equivalents (Y1 Bank - overdraft)
Closing Cash and Cash Equivalents (Y2 Bank - overdraft)

Question 6

Working for Tax Paid

Answer 6

Opening Balance (Y1 income tax + deferred tax) X
P/L Tax Charge. X
Tax Paid (Balancing figure). (X)
Closing Balance (Y2 income + deferred tax). X

Question 7

Working for Interest paid

Answer 7

Opening Balance (Interest Payable Y1) X
P/L charge (interest payable). X
Interest Paid (bal fig). (X)
Closing balance (Interest payable Y2) X

Question 8

Working for PPE Additions

Answer 8

Opening Balance (Y1 SFP PPE). X
Add revaluation (Y2-Y1 reval reserve) X. *could be in notes, if valued downwards (X)
And leased assets (notes, leased liability) X
Less depreciation/impairment (notes, depreciation charge). (X)
Less carrying amount/disposal (notes). (X)
Additions (balancing figure) X * goes as (X) in statement
Closing balance (Y2 SFP PPE). X

Question 9

Working for Government Grant

Answer 9

Opening Balance (SFP. Current+non current liability Y1) X
Less amortisation (notes ). (X)
Add amounts received (bal fig). X
Closing balance (SFP Current+non current liability Y2) X

Question 10

Working for Lease Liabilities

Answer 10

Opening Balance (SFP current+non current Y1). X
Lease additions. (*notes). X
Repayments (balancing figure). (X)
Closing balance (SFP current+non current Y2). X

Question 11

Working for dividends paid

Answer 11

Opening Balance (SFP Retained Earnings Y1) X
Add profit after tax (P/L). X
Dividends paid (bal fig). (X)
Closing balance (SFP Retained Earnings Y2) X