Cashflows

Question 1

Cashflows IAS7

Answer 1

Is a primary statement

Heading

-Operating Activities = Revenue producing activities.
- Investing Activities = PPE Proceeds or purchases.
- Financing Activities =Internal/External finance

Question 2

Lay out - Operating Activities

Answer 2

Net Profit before Tax (PBT, after interest)

Adjust for
Operating activities: interest expense, investment income, depreciation, Gov Grant, Provision

Op Profit before working capital:
Adjust for:
Receivable, inventories, payable.

Generated from Operations
Interest paid (t account working)
Income Taxes paid (T account working)

Question 3

Lay out - Investing activites

Answer 3

Purchase PPE
Proceeds PPE
Purchase Intangibles
Purchase Investments
Interest Received
Gov. Grant Received
Investment income received.

Question 4

Lay out - Financing Activites

Answer 4

Proceeds for issue of shares
Proceeds from issue of debt
Redemption of debt
Payment of Finance lease liabilities
Dividends paid (T account working)

Bottom

Net increase in cash and cash equivalents

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period.