Page 156 - F1 Integrated Workbook STUDENT 2018

Chapter 9

Solution

Pincer Statement of cash flows for the year ended 31 March 20X1

$m $m
Cash flows from operating activities
Profit before tax 163
Depreciation 22
Amortisation 7
Loss on disposal of non-current assets (250 – 424) 74
Interest receivable (79)
Finance costs 55
––––
Operating profit before working capital changes 342
Increase in inventories (246 – 128) (118)
Increase in trade receivables (460 – 373) (87)
Decrease in trade payables (244 – 311) (67)
––––
Cash generated from operations 70
Interest paid (55)
Income tax paid (W1) (5)
––––
Net cash from operating activities 10

Cash flows from investing activities
Purchases of property, plant and equipment (W3) (618)
Purchase of intangibles (W2) (50)
Purchase of investments (69 – 68) (1)
Proceeds of property, plant and equipment 250
Interest received 79
––––
Net cash from investing activities (340)

Cash flow from financing activities
Proceeds from issue of shares (W4) 75
Proceeds from long-term borrowing (755 – 555) 200
Dividends paid (49)
––––
Net cash from financing activities 226
––––
Net increase in cash and cash equivalents (104)
Cash and cash equivalents at beginning of period (124 – 207) (83)
––––
Cash and cash equivalents at end of period (250 – 437) (187)

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