B407F Week 11 Tutorial solution

B407F Week 11 Tutorial solution - B407F Week 11 Tutorial...

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1 B407F Week 11 Tutorial solution - Consolidated Statement of cash flows Question 1 A Group Consolidated Statement of Cash Flows for the year ended 31 December Year 1 $’000 $’000 Cash flows from operating activities Receipts from customers 7,522 Payments to suppliers (3,374) Payments to operating expenses (1,889) Cash generated from operations 2,259 Interest paid (338) Tax paid (535 +948 – 646) (837) Net cash from operating activities 1,084 Cash flows from investing activities Acquisition of subsidiary net of cash acquired (Note 1) (526) Purchase of machine (2,257 +450 – 430 -230-3,088) (1,041) Proceeds from sale of machine 400 Dividend received (1,038 +835 -240 -1,560) 73 Net cash used in investing activities (1,094) Cash flows from financing activities Proceeds from issuance of shares 1,170 Long term loan (900) Dividend paid (591) Dividend paid to NCI(200 +134 +264 -300) (298) Net cash used in financing activities (619) Net decrease in cash and cash equivalents (629) Cash and cash equivalents at beginning of year 447 Cash and cash equivalents at end of year (182)
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2 Notes to the statement of cash flows 1 Purchase of subsidiary During the period the group acquired subsidiary S Ltd Limited. The fair value of assets acquired and liabilities assumed were as follows: $’000 Non-current assets 450 Bank 180 Accounts receivable 300 Inventories 230 Accounts payable (490) 670 NCI in assets acquired and liabilities assumed (134) 536 Goodwill acquired on business combination 190 726 Satisfied by: Cash consideration 706 Shares allotted 20 726 Cash consideration 706 Less: Cash and cash equivalent of S Ltd. (180) Cash inflow on combination net of cash acquired
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This note was uploaded on 02/24/2012 for the course ACT 407 taught by Professor Mshui during the Fall '11 term at The Open University.

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B407F Week 11 Tutorial solution - B407F Week 11 Tutorial...

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