Page 273 - F3 -FA Integrated Workbook STUDENT 2018-19

Statement of cash flows

Example 1c

Prepare the cash flows from investing activities of Spring Co for the
year ended 30 June 20X5.

Solution

Cash flows from investing activities is presented as follows:

$000
Cash paid for purchase of PPE (15,000)

Cash proceeds from disposal of PPE 4,000
———

Net cash used in investing activities (11,000)
———

PPE at CA
$000 $000

Balance b/f: 67,100 Depreciation charge 3,500
Revaluation in year 3,000 Disposals CA 2,500
Cash paid ß 15,000 Balance c/f: 79,100
——— ———

85,100 85,100
——— ———

PPE Disposals
$000 $000
CA of disposal 2,500 Cash proceeds ß 4,000

Profit or loss 1,500
——— ———
4,000 4,000

——— ———

267