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ACCT 301 Lecture Notes - Asset, Finance Lease, Cash Flow

Course Code
ACCT 301

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Chapter 20
Cash flow Statement for the Year Ended 31st December 20x3
$000 $000
Cash Flow From Operating Activities (note 1) 15672
Returns on Investments and servicing of finance:
Interest Received 858
Interest paid (1939)
Preference dividend paid (450)
Interest element of finance lease rentals (358)
Taxation (2887)
Capital expenditure and financial investment:
Purchase of tangible fixed assets (3512)
Sale of trade investment 1595
Sale of plant and machinery 1052
Acquisitions and disposals: (not required for Paper 1.1 Students)
Purchase of subsidiary undertaking (12705)
Net overdrafts acquired with subsidiary (5516)
Sale of business 4208
Purchase of interest in a joint venture (3811)
Equity dividends paid (2606)
Cash outflow before use of liquid resources and financing (10399)
Management of liquid resources:
Cash withdrawn from 7 day deposit 200
Purchase of government securities (5000)
Sale of government securities 4300
Sale of corporate bonds 1200
Issue of ordinary share capital 600
Increase in short term borrowings 2006
Repayment of secured loan (850)
New secured loan repayable in 20x7 1091
New unsecured loan repayable 20x5 1442
Capital element of finance lease repayments (1342)
Decrease in cash (6752)
Note 1 Reconciliation of operating profit to operating cash flows
Operating Profit 17213
Depreciation Charges 3488
Increase in stocks (11840)
Increase in debtors (3774)
Increase in creditors 10585
Net cash flow from operating activities 15672
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