Page 408 - F3 -FA Integrated Workbook STUDENT 2018-19

Chapter 24

Example 1d

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

Solution

Cash flows from financing activities is presented as follows:

$000
Cash proceeds of share issue (5,000 + 3,000) 8,000

Debenture loan repaid (15,000 – 12,000) (3,000)
Dividend paid (5,000)

———
Net cash used in financing activities Nil

———

Share capital
$000 $000

Balance b/f: 30,000
Balance c/f: 35,000 Cash received ß 5,000
——— ———

35,000 35,000
——— ———

Share premium
$000 $000

Balance b/f: Nil
Balance c/f: 3,000 Cash received ß 3,000
——— ———

3,000 3,000
——— ———

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