OHADA CASH FLOW STATEMENT TUTORIALS ON THE STANDARD SYSTEM FINANCIAL STATEMENT Daddy-Chris & Son entity is a company located in Awing, P.O Box 147 Santa, tax payer's number 4586348654843P specialized in the sales of consumable goods and the fabrication of North West traditional outfits. You have been given the trail balance as at BI/IDIN of this entity as follows: Opening Balance ‘Movement Closing Balance ae Dr Cr Dr cr Dr Cr Capital 0,000,000 | 3,000,000 | 10,000,000 7,000,000 Loan 10,000,000 | — 2,000,000 | 8,000,000 16,000,000 Guill 6,000,000 6,000,000 ‘Office equipment 10,000,000 9,000,000,| 5,500,000 | 13,500,000 “Transport equipment 12,000,000 5,000,000 17,000,000 | Investment securities 4,000,000 22,000,000 | 300,000 / 25,500,000) Depreciation of office equipment 2,000,000 | 1,000,000 | 1,600,000 2,600,000 Depreciation of transport equipment 2,400,000 1,700,000 4.100.000 Stock of goods 25,000,000 18,000,000 | 20,000,000 | 23,000,000 Stock of raw materials 15,000,000 16,000,000 | 15,000,000 | 16,000,000 | Finished products 900,000 1,000,000 900,000 1,000,000" Suppliers, book debis 26,000,000 | 75,500,000 | 69,500,000 23,000,000 Suppliers. advances and pavmnt ale 4,600,000 4,000,000 | 600,000 ‘Customers, book debts 18,400,000 {90,000,000 | 91,000,000 | 17,400,000 ‘Customers, advances on received 7,500,000 | 7,000,000 | 6,000,000 6,500,000 Personnel 3.200.000 | 2,000,000", 7,300,000 8.500.000 NSIF 1,300,000 | 1,000,000 300,000 State 6,700,000 | 13,000,000 | 7,000,000 700,000 ‘Other dobie 200,000 15,000,000 | 8,000,000 | 13,200,000 ‘Other ereditors 1,100,000 | 1,100,000 4,800,000 4,800,000 Supplier of fixed assets 8,000,000 | 6,000,000 | 5,000,000 7,000,000 Debts on disposal of assets 2,500,000 2.500.000 Bank 14,000,000 132,100,000 | 125,000,000 | 21,100,000 Cash 9,600,000/ | 95,500,000 | 92,100,000 | 13,000,000 Purchases of goods 36,000,000 | 1,500,000 | $4,500,000 Variation of stock of goods 720,000,000 | 18,000,000 | 2,000,000 Purchases of raw materials {0,000,000 (0,000,000 Variation of stock of raw materials 15,000,000 | 16,000,000 1,000,000 ‘Other Purchases 3,000,000 3,000,000 “Transport 2,000,000 2,000,000 Extemal services 1,000,000 1,000,000 ‘Taxes and rates 7,000,000 7,000,000 (Other expenses 7,000,000 7,000,000 Personnel expenses 32,000.000 32,000,000, Depreciation expenses 3,800,000 3,800,000 Financial expenses 2,500,000 2:500,000 Tosses on exchange 2.000.000 200,000 "Net book value on disposal (of which 500,000F on securities) cee cee Expenses OOA, 1,800,000 1,300,000 Employees profit sharing scheme 7,300,000 7,300,000 Sales of goods 30,000,000 0,000,000 Sales of finished goods 700,000,000 700,000,000 Stock variation of finish product 300,000,/ 1,000,000. 100,000 1,000,000 7,000,000 Fixed product 2,000,000 2,000,000 Operation subsidies 12,000,000 12,000,000 ‘ther mcomes 2,000,000 2,000,000 Financial income 5,000,000 5,000,000 Gains on exchange 5,000,000 5,000,000 ‘Operating expenses transfer 1,000,000 1,000,000 Tncome from sales of assets (of which 600,000F on securities) oman eau Income OOA. 5,000,000 5,000,000 ‘Total 128,200,000 | 128,200,000 | 740,000,000 740,000,000 | 359,700,000 359,700,000 Work required: Knowing that the tax rate is 33% present the following STR tables: 1) The income statement 3) The cash flow statement 2) The balance sheet NCHENDEH CHRISTIAN (M.Sc. FINANCE, PLET ACCOUNTING) 674-10-16-90 Page 1‘AD OHADA CASH FLOW STATEMEN SOLUTION The balance sheet can be presented using the vertical or horizontal layout. Presentation of balance sheet using the vertical layout ‘Name of the business ... Duddy-Chris & Son ... Financial year ended on 31/12/ Identification N°......4586348654843P Duration (in months)...12. BALANCE SHEET AS AT DECEMBER 31 N Intangible fixed assets 3 AE Research and development expenses AF AG Patents, licenses, software Goodwill 6,000,000. 6,000,000 | 6,000,000 AH Other intangible fixed assets Tangible fixed assets 3 Al Lands (1) Q) Of whieh investment in wet J. AK Buildings (1) (1) Of which investment in net... AL Fittings, fixtures and installations AM ‘AN Fauipment, fiminire and hiologieal assets 13,500,000 | 7,400,000 | 10,900,000 | 8,000,000 ‘Transport equipment 17,000,000 | 4,100,000 | 12,900,000. | 9,600,000 AP ‘Advances and payment on accounts for fixed assets AR Financial fixed assets 4 Equity or Participation securities 25,500,000 25,500,000 | 4,000,000 AS AZ BA BB BG BH BI BY | BQ | BR BS. BU Other financial fixed assets PROTRUDE ans RTL Se OOA current assets s 2,500,000 Stocks and stock items in process 6 | 40,000,000 40,000,000 | 40,900,000 Dehts and assimilated application Suppliers, advances and payment a/c 17 | 600,000 600,000 | 4,600,000 Customers 7 | 17,400.00 17,400,000 | 18,400.00 Other debts 8 | 13,200,000 13,200,000 | 6,200,000 TOTAL CURRENT ASSETS BET Ee) Marketable Securities 9 Receivables (values to be collected) 10 Banks, Giro Banks, cash and related items 11_| 34,100,000 34,100,000 | 23,600,000 OES GSES EPR EPR ROO Probable loss on exchange (Assets conversion variance) 12 NCHENDEH CHRISTIAN (M.Sc. FINANCE, PLET ACCOUNTING) 674-10-16-90 Page 2OHADA CASH FLOW STATEM Name of the business ... Daddy-Chris & Son ... Financial year ended on 31/12/...N, Identification N°......4586348654843P . Duration (in months). BALANCE SHEET AS AT DECEMBER 31 N CA_| Capital B CB | Shareholder, uncalled up capital —_(-) B CD _| Premiums related to share capital 4 CE_| Revaluation variance 3e CF _| Unavailable reserves 4 CG_[ Optional/free reserves 4 CH _| Brought forward (tor-) 14. CI_| Net income of the period (profit +, or loss -) 17,956,000 CL _| Investment subsidies 15 CM | Regulated provisions 15 “cr /TOTALSHAREHOLDERSEQUTY || B495600 | 000000 | DA _| Loans and related financial debts 16 16,000,000 10,000,000 DB _| Leasing and assimilated debts 16 pc ions for risk and expenses 16 DH | 00A debts and imilated resources 5 7,000,000 8,000,000 DI_ | Customers, advances on received “Z 6,500,000 7,500,000 DJ_| Operating suppliers 17 | 23,000,000 | 26,000,000 DK | Fiscal and social debts 18 18,344,000 11,200,000 DM | Other debts 19 4,800,000 11,200,000 DN | Provisioned ris! 19 DQ | Banks, discounting credits 20 DR | Banks, financial establishments and cash advances 20 DV | Probable gain on exchange 12 ‘Liabilities conversion variance) DZ NCHENDEH CHRISTIAN (M.Sc. FINANCE, PLET ACCOUNTING) 674-10-16-90 Page 3‘oor oo05t onions NT€ UAGINAOIG LV SV LHAHS JONVIVE (sqyuout vy) wonreinq, eraPNRFEORSF /TI/TE UO papus se9K JeIURULT (LQOAY'T TV.LNOZIMOH) LAAHS AONV IVE ININALVLS MOTA HSV VAVHO oN Uonvognusp] ~ ssouisng oy} Jo OWENOHADA CASH FLOW STATEMEN Name of the business ... Daddy-Chris & Son .. 4586348654843P Financial year ended on 31/12/...N... Identification N°. Duration (in months)... PROFIT AND LOSS ACCOUNT FOR PERIOD ENDED DECEMBER 31...... TA_| Sales of goods 21__ [80,000,000 RA_| Purchases af goods = | 99 | $4,500,000 RB _| Variations of stock(t or -) -[ 6 2,000,000 XA TB_ | Sales of manufactured products B = | 21 [100,000,000 TC_| Works, services sold c [2 = TD _| Accessory incomes D + [at 1,000,000 XB_| TURNOVER (A¥BHCHD) 181,000,000 TE_| Stored production (or issued) 6 100,000 TF _| Fixed production (own use) + [21 [2,000,000 TG _| Operating subsidies and grants + [21 [712,000,000 TH_| Other incomes = 21 [2,000,000 TI_| Operating expenses transferred +[ 2 1,000,000 RC_| Purchases of raw materials and related stores = | 22 | 60,000,000 RRD_| Variations of stocks of raw materials and related stores 6 1,000,000 RE_| Other purchases = | 2 [3,000,000 RF _| Variations of stocks of other supplies (F or -) 6 = RG_| Transport = | 23 | 2,000,000 RH_| External services = | 24 [1,000,000 RI_| Taxes and rates = | 25 [7,000,000 RJ_| Other expenses = | 26 | 7,000,000 RG VALUE ADDED (XB+RA+RB)+(Sum TE to RJ) 62,600,000. RK _| Personnel expenses - | 27 [32,000,000 XD_ (EROSHOMUEUEN eT MUO COn 30,600,000 a Provisions written back + | 28 Depreciations and provisions 3CA78 | i 300,000 oD RUN aE LE ROSCOE) 300,000 Financial incomes, + 10,000,000 fT Financial provisions written back = fT : TM_| Financial expenses transfer +| 2 5 RM_| Financial expenses = | 29 | 6,500,000 RN _| Depreciations and provisions = | 3ca&28 5 XF XG_| ORDINARY ACTIVITY RESULT (XE+XF) 'TN_ | Incomes from disposal of fixed assets + | 3D TO | Other income OOA + | 30 RO_| Accounting values of disposals of fixed assets =| 3D RP_| Other Expenses 0.0.4 =| 30 XH_[ OFF ORDINARY ACTIVITIES RESULT (Sum TN to RP) na Timployees profit sharing scheme =| 0 Income tax _si_[NETINCOME WNGAREFRRORS) rsa) NNCHENDEH CHRISTIAN (M.Sc. FINANCE, PLET ACCOUNTING) 674-10-16-90 Page 5.OHADA CASH FLOW STATEMEN Name of the business ... Daddy-Chris & Son ... Financial year ended on 31/12/. Duration (in months) Identification N°......4! STATEMENT OF CASH FLOW Cash flows from operating activities Global self financing eapacity (GSFC) 21,156,000 FB | OA current assets” 72,500,000 FC | = Variation of stocks CT ‘900,000 ED | - Variation of debts (2,000,000) FE_| + Variation of current liabilities” 5,844,000 Variation of FR linked to operating activities ‘Sum (FB+FC-FD-FE):............7,244,000.. TM er Cash flows from investing activities ~ Cash outflow for the acquisition of intangible fixed assets EN FG | - Cash outflow for the acquisition of tangible fixed assets (7.000.000) FH | - Cash outflow for the acquisition of financial fixed assets (22,000,000) Cash inflow from the disposals of intangible and tangible BUA geese 7,600,000 FJ_| + Cash inflow from the disposals of financial fixed assets 12 500,000, FZ@M Net Cash flows from investing activities (sum FF to FJ) (EY Cash flows from financing with owner's equity 6 FK | + Increase of eapital by new contributions [22 | 10,000,000 FL _| + Investment subventions received FM | - Reductions in capital | [23] 6.000.000) EN |= Dividends paid 24 ZD_| Net Cash flows from financing with owner’s equity(Sum FK to FN) | D 77,000,000 FO | Loans 26 | 8,000,000 FP | + Other financial debts - Reimbursements of loans and other financial debts (2,000,000) ‘Net cash flows from creditor’s equity (Sum FO to FQ B 6,000,000 Net Cash flows from financing activities (D+) 13,000,000 Variation of net cash of the period (B+C=F) tcl | 10,500,000 | | (2) Excluding variations of receivables and payables linked to investing activities (variations on receivables on the disposals of fixed asscts and payables on acquisitions or constructions of fixed assets(for example variations of reecivables on investment subventions received) NCHENDEH CHRISTIAN (M.Sc. FINANCE, PLET ACCOUNTING) 674-10-16-90 Page 6