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Unformatted text preview: Financial accounting for decision makers (5th edition) Atrill and McLaney Exercise solution Chapter 6 Colmar Ltd Cash flow statement for the year ended 31 December this year £000 £000 Cash flows from operating activities Profit before taxat ion (after interest) 9 Adjust ments for: Depreciat ion 36 Interest expense 22 58 Increase in trade receivables (96 – 80) (16) Increase in trade payables (114 – 75) 39 Increase in inventories (83 – 68) (15) Cash generated from operations 75 Interest paid (22) Taxat ion paid (Note 1) (6) Dividend paid (5) Net cash from operating activities 42 Cash flows from investing activities Payments to acquire tangible noncurrent assets (Note 2) Net cash used in investing activities Cash flows from financing activities Issue of loan notes (60 – 55) Net cash from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at 1 January this year Cash and cash equivalents at 31 December this year (51) (51) 5 5 ( 4) 6 2 Notes 1 Taxat ion owed at start of year (fro m the opening balance sheet) Taxat ion charge for the year (fro m current year’s inco me statement) Taxat ion owed at end of year (fro m the closing balance sheet) Taxat ion payment during the year £4,000 4,000 (2,000) £6,000 2 Opening net book value of NCAs (fro m the opening balance sheet) £(110,000) Depreciat ion charge for the year (from the note in the quest ion) 36,000 Closing net book value o f NCAs (from the opening balance sheet) 125,000 NCA addit ions during the year £51,000 1 ...
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This note was uploaded on 11/29/2009 for the course ACCOUNTING 2 taught by Professor Reynolds during the Spring '08 term at Open Uni..
- Spring '08