Solutions to statement of cash flow questions
Bright Limited
Statement of Cash flow for the Y/E 31/12/2016
GHC
GHC
Cash flow from operating activities
Net profit before & tax
42,000
Depreciation
11,800
Loss on disposal of plant & machinery
1,800
Increase in inventory
(400)
Increase in receivable
(1,800)
Increase in payables
600
Tax paid (8,600+12,400-10,200)
(10,800)
Interest paid
(2,800)
Net cash flow from operation activities
40,400
Cash flow from investing activities
Acquisition of assets
(9,000)
Receipt from disposal of plant & machinery (W1)
1,200
Net cash flow from investing activities
(7,800)
Cash flow from financing activities
Issue of shares
3,200
Issue of debenture
(30,000)
Payment of dividend
(6,600)
Net cash flow from financing activities
(33,400)
Net cash and cash equivalent
(800)
O/balance 31/12/2015
5,600
C/balance 31/12/2016
4,800
Workings
W1 Noncurrent assets
Cost
Acc. dep
Carrying value
GHC
GHC
O/balance
156,000
22,400
Addition
9,000
11,800
Disposal (bal fig)
(5,400)
(2,400)
3,000
C/balance
159,600
31,800
GHC
Carrying value of asset disposed
3,000
Loss on disposal
1,800
Cash receipt
1,200
