Exercise – Construct a Cash Flow Statement
Here is the answer of Exercise – Construct a Cash Flow Statement.
All figures in $ and in ‘000s, except per share data
Cash Flows from Operating Activities
Note 1 – Inventory
| | 2021 |
| Inventory brought forward | 150 |
| Inventory carried forward | 170 |
| (Increase) in inventory (net investment in assets reducing cash available from operations) | -20 |
Note 2 – Trade Receivables
| | 2021 |
| Trade receivables brought forward | 200 |
| Trade receivables carried forward | 150 |
| Decrease in trade receivables (net decrease in assets increasing cash available from operations) | 50 |
Note 3 – Trade Payables
| | 2021 |
| Trade payables brought forward | 140 |
| Trade payables carried forward | 160 |
| Increase in trade payables (net increase in liabilities increasing cash available from operations) | -20 |
Note 4 – Tax
| | 2021 |
| Tax payable balance brought forward | 110 |
| Tax charge for the year | 80 |
| Tax paid in the year (operating cash flow) to balance | -90 |
| Tax payable balance carried forward | 100 |
Note 5 – Property, Plant & Equipment
| | 2021 |
| PPE at book value balance brought forward | 180 |
| Depreciation charged in year | -30 |
| Additions to PP&E (net) to balance | 200 |
| PPE at book value balance carried forward | 350 |
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