AFE5008-B Financial Accounting

ABLE PLC

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 December 20X7

£ £

Cash flows from operating activities

Cash generated from operation (see note) 546,000

Interest paid (28,000)

Tax paid ( 86+124-102) (108,000)

Net cash from operating activities 410,000

Cash flows from investing activities

Purchase of property ,plant and equipment (90,000)

Proceeds from sale of property ,plant and equipment(w1) 12,000

Net cash used in investing activities (78,000)

Cash flows from financing activities

Proceeds from issue of share capital (360+36-340-24) 32,000

Long-term loan repaid (500-200) (300,000)

Dividends paid (72,000)

Net cash used in financing activities (340,000)

Decrease in cash and cash equivalent (8,000)

Cash and cash equivalent at 1.1.20X7 56,000

Cash and cash equivalent at 31.12.20X7 48,000

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 AFE5008-B Financial Accounting

Note to the statement of cash flows

Reconciliation of profit before tax to cash generated from operations for the year ended 31
December 20X7

Profit before tax 392,000

Depreciation charges 118,000

Loss on sale of tangible assets 18,000

Interest expenses 28,000

Increase in inventories (4,000)

Increase in receivables (18,000)

Increase in payables 12,000

Cash generated from operations 546,000

Working

Non-current assets disposals

Cost

Balance b/d 1,560,000 balance c/d 1,596,000

Purchases 90,000 Disposals 54,000

1,650,000 1,650,000

Accumulated Depreciation

Balance c/d 318,000 balance b/d 224,000

Depreciation on disposals(bal) 24,000 Charge for year 118,000

342,000 342,000

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