Page 365 - SBR Integrated Workbook STUDENT S18-J19

Analysis and interpretation

Example 3

Cash flow analysis

Below is the statement of cash flows for Swan, a public limited company.
Swan is a manufacturing business.

Cash flows from operating activities $m $m

Profit before tax 104
Finance costs 16

Depreciation 54
Loss on disposal of PPE 21

Impairment of goodwill 39
Increase in inventories (19)
Increase in receivables (12)

Increase in payables 43

––––
Cash generated from operations 246
Interest paid (16)

Taxation paid (29)
––––

Net cash from operating activities 201

Cash flows from investing activities
Proceeds from disposal of PPE 5

Purchase of PPE (29)
––––

Net cash used for investing activities (24)

359