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The statement of cash flows

Example 2: Solution
$ $
Cash flow from operating activities
Cash generated from operations (from Example 1)
Finance cost (from Example 1 above)
Tax paid
–––––––
Net cash from operating activities

Cash flows from investing activities
Proceeds of sale of non-current assets
Payments to acquire non-current assets
Investment income (from Example 1 above)
–––––––
Net cash used in investing activities

Cash flows from financing activities
Equity dividends paid
Proceeds from issue of shares
Repayment of loan notes
–––––––
Net cash used in financing activities
–––––––
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the
period
–––––––
Cash and cash equivalents at the end of the period
–––––––

Illustrations and further practice

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