Page 407 - F3 -FA Integrated Workbook STUDENT 2018-19

Answers

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

——— ———

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