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Q Simpang's Cash Flow Exercises

Calculate the cash flows given the following extracts from statements of financial
position drawn up at the year ended 31 December 20X0 and 20X1.

(1) 20X1 20X0

$ $
NCA - PPE (CV) 300 100

During the year depreciation charged was $20, a revaluation surplus of $60 was
recorded, PPE with a CV of $15 were disposed of and PPE acquired subject to
leases had a CV of $30.

Required: How much cash was spent on PPE in the period?

Cash out and an investing activity

(2) 20X1 20X0

$ $
NCL - Deferred tax 100 50
CL - Income tax liability 120 100

The tax charged in the statement of profit or loss $200.

Required: How much tax was paid in the period?

Cash out & an operating activity

(3) 20X1 20X0

$ $
NCL - lease obligations 100 150
CL - lease obligations 220 130

During the year new leases were entered into $300

Required: How much was the capital element of lease obligations re-paid in
the period?
Cash out and a financing activity

Tom Clendon
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(4) 20X1 20X0

$ $
Non-controlling interest 900 500

In the group statement of comprehensive income, the total comprehensive income

attributable to the NCI was $700. During the year the parent transaction with the NCI
and sold them shares in a control to control transaction resulting in NCI increasing by
$100.

Required: How much was the cash dividend paid to the non-controlling
interest?
Cash out and a financing activity
20X1 20X0
(5)
$ $
Non-controlling interest 850 500

In the group statement of comprehensive income, the total comprehensive income

attributable to the non-controlling interest was $600. During the year the parent
disposed of a subsidiary and de-recognised NCI of $100.

Required: How much was the cash dividend paid to the non-controlling
interest?
Cash out and a financing activity

(6) 20X1 20X0

$ $
Investment in associate undertaking 9,500 9,000

The group statement of profit or loss reported “Income from Associate Undertakings’
of $1,000.

Required: How much was the cash dividend received by the group?
Cash in and an investing activity

Tom Clendon
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(7) 20X1 20X0

$ $
Investment in Joint Venture 8,000 3,600

The group statement of profit or loss reported “Income from Joint Venture’ of $4,000.
In addition, in the group statement of other comprehensive income the reported
"Revaluation gains of the Joint Venture" of $500.

Required: How much was the cash dividend received by the group?
Cash in and an investing activity

(8) 20X1 20X0

$ $
NCA PPE (CV) 900 650

During the year depreciation charged was $200, and the group acquired one
subsidiary with PPE of $300, and disposed of another with PPE of $10.

Required: How much cash was spent on PPE in the period?

Cash out and an investing activity

(9) 20X1 20X0

$ $
NCL – Loan 6,000 3,500

The loan is denominated in a foreign currency, and a gain of $500 has been
recorded on the retranslation.

Required: How much cash was borrowed?

Cash in and a financing activity

Tom Clendon
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Group Cash flow 1

The balances on the group current and deferred tax liabilities were $20m & $40m at
the start of the accounting period and $30m & $25m at the end of the period. During
the year the group had a tax charge in the statement of profit or loss of $60m (which
included $5m relating to an associate) and a tax charge of $15m in the other
comprehensive income. During the year the group sold a subsidiary which had a tax
liability at the date of disposal of $10m.

Required - Calculate how much tax was paid in the year (cash outflow -
operating activities)

Group Cash flow 2

At the start of the accounting period the group had PPE of $400m and at the year-
end $900m. During the period depreciation of $100m was charged, an impairment
loss of $50m recognised, an item sold for $200m on which a profit of $120m was
recognised in profit or loss and new leases of $15m were entered into. During the
year the group sold a subsidiary which had PPE of $30m. At the year-end there was
an outstanding current liability of $5m in respect of PPE supplied on credit.

Required - Calculate how much was spent on PPE. (cash out flow - investing
activities)

Group Cash flow 3

Equity Retained Other NCI Total

shares earnings reserves
$m $m $m $m $m
Opening balance 100 200 50 60 410
Issue of shares 200 200
New subsidiary acquired 5 5
Total Comprehensive Income 80 15 12 107
Gain realised on disposal 8 (8) Nil
Dividends paid (20) (5) (25)
___ ___ ___ ___ ___
Closing balance 300 268 57 72 697

During the year shares with a fair value of $40m were issued in a share for share
exchange on the acquisition of a new subsidiary with a fair value of the NCI at
acquisition of $5m.
During the year PPE with a carrying value of $30m with a revaluation surplus of $8m
was sold and a profit of $5m was correctly included in the statement of profit or loss.

Required - How many cash flows can you spot !!

Tom Clendon