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Statement of cash flows
Example 2
Cash flow calculation
Extracts from the statements of financial position of Harrad show the
following:
Statement of financial position 20X9 20X8
$ $
Non-current assets
Property, plant and equipment 43,200 33,800
Equity
Share capital 10,500 9,000
Share premium 2,300 1,700
Revaluation surplus 1,850 500
Non-current liabilities
Lease payable 9,300 3,500
Current liabilities
Lease payable 3,500 1,100
Additional information
During 20X9 depreciation of $7,200 was charged, and Harrad sold an item of
plant with a carrying amount of $900 for a profit of $400.
Harrad acquired machinery under a lease agreement. At acquisition the
present value of the lease payments for this machinery totalled $10,000.
The increase in revaluation surplus relates to Harrad’s property which was
revalued during the year. Ignore deferred taxation.
Calculate Harrad’s cash flows from investing and financing activities for
20X9.
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