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Statement of Cash Flow

The summary provides reconciliations of profit to net cash from operating activities and statements of cash flows for three companies - Cube Clothing Ltd for the year ended 31 December 2015, Hartong Construction Plc for the year ended 30 June 2016, and Malacca Trading Plc for the year ended 31 December 2015. The reconciliations and statements show cash flows from operating, investing and financing activities for each period.

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83 views7 pages

Statement of Cash Flow

The summary provides reconciliations of profit to net cash from operating activities and statements of cash flows for three companies - Cube Clothing Ltd for the year ended 31 December 2015, Hartong Construction Plc for the year ended 30 June 2016, and Malacca Trading Plc for the year ended 31 December 2015. The reconciliations and statements show cash flows from operating, investing and financing activities for each period.

Uploaded by

vdj kumar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Statement of cash flows

Cash generated from operating activities


$
Profit for the year x
(+) Depreciation charge for the year x
Loss on disposal of non-current assets x
(-) Profit on disposal of non-current assets (x)
(Increase) / decrease in inventory x
(Increase) / decrease in trade receivables x
Increase / (decrease) in trade payables x
Net cash from / (used in) operating activities x

Statement of cash flows for period ending ……..


$ $
Net cash from / (used in) operating activities xx
Investing activities:
Purchase of property, plant and equipment (x)
Proceeds of sale of equipment x
Interest received x
Dividends received x

Net cash from / (used in) investing activities xx


Financing activities:
Proceeds from issue of shares x
Bank loan received x
Repayment of bank loan (x)
Dividends paid (x)
Net cash from / (used in) financing activities xx
Net increase / (decrease) in cash or cash equivalents xx
(+) Cash and cash equivalents at the start of the year xx
= Cash and cash equivalents at the end of the year xx
Q1
Abida Sheikh is plaining to invest in Cute Clothing Ltd.
She has provided you with the following statements of financial position of Cute Clothing
Ltd for the last two years.
Assets 31 December 2015 31 December 2014
($000) ($000)
Non-current assets:
Property, plant and equipment 1 722 1 655
Current assets:
Inventory 2 678 2 345
Trade receivables 1 672 1 363
Cash and cash equivalents ____- __37
4 350 3 845
Total assets 6 072 5 500
Equity and liabilities:
Equity:
Share capital 2 000 1 700
Share premium 500 400
Retained earnings 1 614 1 452
Total equity 4 114 3 552
Non-current liabilities:
Loan at 10% 750 1 000
Current liabilities:
Trade payables 1 168 948
Cash and cash equivalents __40 ____-
Total liabilities 1 958 1 948
Total equity and liabilities 6 072 5 500

Additional information:
Balances on property, plant and equipment were:
31 December 2015 31 December 2014
($000) ($000)
Cost 2 700 2 500
Accumulated depreciation 978 845

During the year ended 31 December 2015, the business sold machinery, that cost
$600 000, with accumulated depreciation of $257 000, for $450 000.
(a) Prepare a reconciliation of profit for the year to net cash from operating activities
for the year ended 31 December 2015.

Cube Clothing Ltd


Reconciliation of profit for the year to net cash from operating activities for the
year ended 31 December 2015

(b) Prepare the statement of cash flows for the year ended 31 December 2015.

Cube Clothing Ltd


Statement of cash flows for the year ended 31 December 2015
Q2

Hartong Construction Plc provided the following information.

Statement of financial position


30 June 2016 30 June 2015
Assets $ $
Non-current assets 1 809 000 2 051 000
Current assets
Inventory 499 000 510 000
Trade and other receivables 457 000 421 000
Cash and cash equivalents __69 000 ______-
1 025 000 931 000

Total assets 2 834 000 2 982 000


Equity and liabilities:
Equity:
Share capital 1 200 000 1 100 000
Share premium 120 000 110 000
Retained earnings _975 000 1 382 000
Total equity 2 295 000 2 592 000
Non-current liabilities:
Bank loan 220 000
Current liabilities:
Cash and cash equivalents - 62 000
Trade and other payables 319 000 328 000
319 000 390 000
Total equity and liabilities 2 834 000 2 982 000

Additional information:
An extract from the non-current assets schedule
30 June 2016 ($) 30 June 2015 ($)
Non-current assets cost 2 445 000 2 724 000
Accumulated depreciation 636 000 673 000

On 30 June 2016:
 Equipment costing $480 000 with accumulated depreciation of $189 000 was sold for
$278 000.
 Plant costing $424 000 with a carrying value of $216 000 was sold for $235 000.
 Profit for the year was $135 000
 A final dividend of $542 000 was paid
(a) Prepare a reconciliation of profit for the year to net cash from operating activities
for the year ended 30 June 2016.

Hartong Construction Plc


Reconciliation of profit for the year to net cash from operating activities for the
year ended 30 June 2016

(b) Prepare the statement of cash flows for the year ended 30 June 2016.

Hartong Construction Plc


Statement of cash flows for the year ended 30 June 2016
Q3

Malacca Trading Plc provided the following information at 31 December 2014 and
31 December 2015.
31 December 2015 31 December 2014
($) ($)
Assets
Non-current assets
Property, plant and
2 723 000 2 586 000
equipment at carrying value
Current assets
Inventory 1 056 000 918 000
Trade and other receivables 489 000 332 000
Cash and cash equivalents _169 500 _164 000
1 714 500 1 414 000
Total assets 4 437 500 4 000 000

Equity and liabilities


Equity
Share capital - $1 ordinary
2 900 000 2 500 000
shares
Share premium 220 000 200 000
Retained earnings _569 500 _493 000
Total equity 3 689 500 3 193 000

Non-current liabilities
6% bank loan 200 000 275 000
Current liabilities
Trade and other payables 548 000 532 000
Total liabilities 748 000 807 000
Total equity and liabilities 4 437 500 4 000 000

Additional information:
Property, plant and equipment 31 December 2015 31 December 2014
$ $
Cost 3 413 000 3 316 000
Accumulated depreciation 690 000 730 000
 On 11 April 2015 machinery that had originally cost $350 000 was sold for $64 000. The
carrying value of the machinery was $51 000.
 There had been no revaluation of non-current assets during the year.
 On 31 May 2015 the company issued additional shares.
 During the year the company paid the following dividends:
22 Jan 2015, $0.03 per share
29 July 2015, $0.015 per share
 Profit for the year ended 31 December 2015 was $195 000.

(a) Prepare a reconciliation of profit for the year to net cash from operating activities
for the year ended 31 December 2015.

Malacca Trading Plc


Reconciliation of profit for the year to net cash from operating activities for the
year ended 31 December 2015

(b) Prepare the statement of cash flows for the year ended 31 December 2015.

Malacca Trading Plc


Statement of cash flows for the year ended 31 December 2015

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