Week 8 - L1 Flashcards
Name 2 reasons for a SCF
- Understandable
- Simple
- Cash is King - essential for business survival
- Manipulation - harder to manipulate than profit
- Shows Cash Generation/Spending - Optional V Compulsory Payments
- Liquidity
- Shows info not shown elsewhere
Where does Profit Before Tax go on the SCF
Operating Activities
Where does Depreciation go on the SCF
Operating activities
Where does Amortisation go on the SCF
Operating activities
Where does Gain/loss on disposal of asset go on the SCF
Operating activities
Where does Increase/decrease in provisions go on the SCF
Operating activities
Where does investment income go on the SCF
Operating activities and investing activities
Where does finance costs go on the SCF
Operating activities
Where does increase/decrease of inventories go on the SCF
Operating activities
Where does increase/decrease in receivables go on the SCF
Operating activities
Where does increase/decrease in payables go on the SCF
Operating activities
Where does cash generated from operations go on the SCF
Operating activities
Where does interest paid go on the SCF
Operating activities
Where does tax paid go on the SCF
Operating activities
Where does Purchase of PPE go on the SCF
Investing activities
Where does purchase of integibles go on the SCF
Investing activities
Where does proceeds from the sale of PPE go on the SCF
Investing activities
Where does Proceeds from the issue of shares go on the SCF
Financing activities
Where does issue/repayment of loans go on the SCF
Financing activities
Where do dividends go on the SCF
Financing activities
Where does leases repaid go on the SCF
Financing activities
What does the last section of SCF include?
- Net Increase/Decrease in cash/cash equivalents
- Opening cash and cash equivalents
- Closing cash and cash equivalents
