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Chapter 17
Example 17.4
Branson’s opening and closing statements of financial position show the
following:
Closing Opening
$000 $000
Inventory 300 600
Receivables 900 600
Payables 1,500 600
During the period the group acquired a subsidiary with the following working
capital:
$000
Inventory 150
Receivables 600
Payables 120
During the period the group disposed of a subsidiary with the following working
capital:
$000
Inventory 75
Receivables 135
Payables 60
Required:
Prepare the extracts required in respect of movements in working capital
that should be shown in the operating activities section of the statement
of cash flows?
328
