CASH FLOWS

Indireetnlldhod .
 IAS T
-
PEL
Sales
= .

Ate
Profit Reconciliation
.
- - -
.

Operating Cost
gsdes card
Activities
.

→ . -

Pure
Iufluufontflows
.

I Investing
Activities
gop
xxx
- - -
.

Financing
, Activities . n u n .

CashFlows from
Operating Activities go.Expen-c.am
Int Imam 30

)
.

( xxx
) SntExp .

Finance lost Coad

;)
-

93T
)
-
×"

I@t
'

ind PBT
.

Adjustments
. -

Depexp
-4 Tax (xxx)
Exp
xx
.

¥÷÷÷÷÷"÷%ant I:& eashEg÷m⑤ Pnr . - *

Loss on
disposal xx
=

Interest income - - - -
-7 .

(xx ) - going
Interest
Increase) Dec
Exp NK
NBR zoo
.
.
Cash 8D .

in
Tnventory xx
PPEE 300
Increase( Dec in Receivable xx sold it 50L .

Increase) Dec Payable gain ondisp

in xx . 200 .

CASH GENERATED FROM OPERATIONS XXX

less : Interest Paid ¢xxxDB✓

Tax Paid LANI
NET CASH FLOWS FROM OP ACTIVITIES
.
XXX

cashflow from Investing Activities

Purchase
of PPQE (XXX )
Proceeds from disposals
of N.CA 500 .

Interest Received 300 .

Relieved
Govt grant xxx

Net cashflow from Investing Fxx

Activities
Cashflows from
financing Activities

Proceeds from Issue of Shares xxx

Proceeds from Issue of Loan Notes xxx

Repayment of Loan (xxx )

Repayment of lease Obligation (Iff,g
Ordinary dividends paid .
) (xxx)
④xxx )

Net cashflow from Activities

financing xxx

08 09
Inventory 1000 700
1500
Receivable 2000
5000
Payables 3000

→ Decrease in Inventory = Increase in Cash

Increase
→
→

Decrease
in
Inventory
in Receivables
=

=
Decrease in Cash
Increase in cash
→ Increase in Receivables = Decrease in cash -

→
Decrease in Payable = Decrease in cash

→ Increase in Payable = Increase in cash

(Total Thx) . -

Dr TEE Ak Cr
PPGE ad

(B) .
bid ***
Rev Res
.

xxx
cash xm )
current

( Utah + ""
'

Rev Reserve xxx

paid
.

✓ D-TL xxx
PGL Tax
Etpforlheyr
.

( gi%fe.info .

Rev Reserve
Q JABBA
-
'

- - r

Income
.

→ Tax

Akhnaton

- - -
I Z .

- . - - -

= Escondido
- -
- - -

- = =

- -
- - -
-

Essel: CEASED
'
"

Contingent
i

-
 "÷÷ni s u
Adj #2

f
"

÷:
"
:c:c: :S:S:
"

"a oooo .
.io .
Deon migrant,
" "" .. .".
.

Lease "
obligation , Dep Exp 2200 Cash 1100 bld 48001-1700))
bfd 900-1400
'
cash
Phl
29001

49.16000 445400 OP 't'

.
.

affliction
'
.
-

fine, ma
( Bank 15790
cfdzooo-1900
-

e
- .
-

-
-
' -

eldl4#oo
-
s -

f
c
Revalued to :# 09 -
-
.
-
.

I
, .
p
'
Accdep
'
- 1200
!
FBV=74oo .
I
- Ritllfangible NCA 1500 ✓ ,

Off
-
:
Lease obligation 15.00 250
- -

Defferedluc
-

c r

cash proceeds 12000 limit )

'

→ 250 r
✓ PEEL
-
-

disposals TE
'
OPA 950
gain inv)
on
Rev Res 1600 Bank r

I
'

RE Hoo -

✓ D. I 950 Non Cashier

-
.
-
-
-
-
-

3 HAS -37)
Ady
'

\
(
L
30%10×4 zot§x5 .
Tax AK -

R Ins
Ikea
.
'
1200

Insjkecierablelzogjj
.

Pal bid t2oo .

soo .

PGL Ihsan Reda 300 Cash 1350

✓ PEL -300 . -

← LB)
&

In
opt) Tpatid
4dto
Cash Income .
 Jabba co 's SOCF for the ended 30M Sept x5
year
② CFI
① =

CFO
Purchase PPEE ( 2900)
of .

diRelieved
spoffdadoy
PBT so Proceed from
12000
.

Adj for
.

950
Dep Exp zzoo govt grant
Received
Int 4oz
{ }
Gain disposal 4600
.

on . -

Amort of grant 250

Insurance Receivable
Int Income
Finance Cost
. - - - .
too )
1403)
260
.

. -
-
-
Net Cosh Flow From
Investing
Act
. -
-
-
10090
l '

Increase in
Inventory (too) -

1
Increase in Receivables too )

Operating
12830 ) →
Increase in
Payable ' 11-00 .
i

/
cash used in Operations ( 2780 )'t

Investi ng
- - - - -

less interest Paid

:
Goo ) →
less Tax Paid
:
( 1350)
→ Fhm
city
.

Net cash used in

Op -
Activities ( 4390)
③
CFF

Repayment ofiotioan hoof .

What if Commentary ?
.EE?InataiIgaaiuities*L4soos&#VTaxpaidr-
Issue
of 61 . Loan 800 .

Rnieteeaonentaofus'T
1350
Net Increase in cash teaser equivalent
for the ended 3. Oth Sep x5 1400
yr
.

Equivalent 4550) faxfredit.JO

§FgFaf
Cash a cash at
303pm "
" " " at
3 5¥ 850£ losses
" " .

.tw
 Gain on 4600

(
disposals
12000193T
( 12400mg 50
#
- -
.

¥
( 4550 ) loss ( lot
negahifahiffw
Notes

As activities for
→
operating are ve Not
good company
-
-

→
Investing activities Ltve) , just because
of disposal of factory which is a
,
one of event .

→ Without this disposals of factory ,

Co .
would be in deficit of (10,600)
would be in loss of (45505
'

→ Without this disposals of factory , Co

performance Bad
.

As co has
paid tax of 1350 , 1.35 million this means co Rich last But this
→
year was
yr yr
- . .
.

-
=

→ With this falling business , Inc in Inv t Rec shows poor working capital management
.

Positive Points

→ One
good this Co has converted his
.

expensive loan to cheap loan

Interest {
Net 4.o.o.o.net 400 ✓ =

SEE ? x f. 1=1484
3522

PRE
→ Also co .

Investing in
,
which is a
positive sign for long term

Asset
I

Machine cost Alc Allowance for deep

original
cost b)d xxx

Hd xxx
Y disposals xx

disposals xxx
Dep Exp xxx
Dep Exp xxx
cash xxx
addition
yd ××× Contra
eld xxx
Allowance for deep xxx

Asset
 -

- v

- - - - - -
- -- - - - .
-
. .

- -

- . - - . . - -
.

- - -
- -

# . .
-

Funder prov .
.

-
-
- -
- - -

Accdep 2000

NCA 3000
Rev Res 5000

Rev Res 1000

RE 1000 .
 NCA cost Allowance for deep

Hd 80,000 bfd 48000

disposals 10,000 .

y
'

disposals 9000
'

Rev 3000, I
,

Revak
'

cash 20€00
l '
. . 2000 Dep Exp 6000
.
→
op ( ±)
did
,

addition]
93500
old i
,
.
I
, ppg
cost = 10,000 / old 43000
int) '
'
Acc deep = 19000)
I
MBH 1000
)
=

→ int
.
s

\ disposal lost -00L

Loss on disposals
.

1500 .

,
.
-

Acc
def
2000
'

socle
.
- - .

Building
EE
-
-
300 .

.
i.
Op RE 15800 ✓

Rep Rls 5000

.

-
-
-
-

Add PAT
. -
: 7-ooo .
-
o
.

F -I

T.es?89a.aa.Ysdedmds1oio,#' Financing "

\

4000 .
'

I -
Rev Reserve
.

Realized
i
Rev Res 1000
SOCLE
Closing RE 19800
. .

v i
-

R E 100
-
.

. - -

Adj # 3

.
-
M .

i. Prey -120
.
.

,
IN A

120 ✓
PGL 120
-
'

Provision 120
provision 30W It
. -

PEL . -

✓ Cash I I
Exp $301 -

underprov
PBT
.
-
- -

Adi for '

p
,

30 t
(

cash
generated from operations
(
'

Int Paid ( )
claims paid - . -
1150W

Adj # 4 Sc Premium
Firth
'

Opening 6000 500 .

- Conversion 100 . 300 .

Bank 45W 't c.ask.is#e 4000 Cpd .

OSC 10500
Premium 4000 Closing 16,600 4800

2000
201 801 -

loan
.

IGN Fine )
.

Loan
Equity →
. .

Castile
-

16N ' - -

400 .
.

11251 .

100 shares

convertible loan 400 .

OSC 100 .
✓
✓ Premium 300 .

Total Tax
-

5300
cash told
(B)
PGL 3200
443000
.
 Coattown SOCF for the YIE 3lstMarchX9

CFO
PBT 10200

Adj
Dep Exp 6000
Loss on disposal 1500 .

Under prov . -
- 30 .

Finance cost . . - 600 .

Increase in
Inventory (800)
Increase in Receivables (5000 )
Decrease in Payable too) .

Prov 2850
Increase warranty
in 820 .

Cash generated from Operations 13,050

Interest Paid 1600 )
Tax Paid 15500)
claims Paid 1150€
Net cashflow from Op -
activities 6800

CFI
Durchase of PRE (20500J
Disposals cost (500)
Net cash used in
Investing Act (21000)

CFF
Proceeds from Issue of shares 14500 .

Repayment of convert able loan (1600)

Issue of 101 .
Loan Notes 1000 .

Ord dividends Paid

-

(4000)
Net cashflow from
financing Act 9900
.

Net Decrease in cash a cash equivalent

for the yr Ended 3lstmarX9 (43300)
Castle Cash Ep .

opaj -
700
(3600 ) → Bank
old .
 PP
?E INBV )
t Prov -_ 162
PV -150 3othSepx6
Hd 940 Deep Exp 255 → op ()
t lstoctxs
Prov 150 Int Exp 12 PPGE 150

Rev Pies 35 Provision 12 Prov 150

Cash addition yd 1280 Non Cash

- ¥ PPGE 35
(B) 410 Exp Rev Res 35

Finance cost (40 )

PBT 40
Software
cash Generated From Operations
told -

Amort 45
Int Paid 128) cash 180 (B)
addition
op .

Hd 135
invt ) t

software =D
180
I
→
Amort=45 NBV -
- 135

10ctX5 lttprxb 30sepx6

Adj #2

Investment LFVTPQD
Investment 15 → opt ) PBT
125 PGL 15 115)
bid
PGL 15 Tervestment 10 → invfj (5)
cash 10 Cash to

addition
Cfd 150
 D. S C Premium
-

85 #
Opening 300 Bank 265 Fink)
Bonus Issue 25% 75 (75 ) OSC 125
Cash issue 125 140 Premium 140

150
Closing 500

l l l l l

Istoctxs 1st June

-

lstjulyxb 30 'hsepx6
lstphprxg *6

# of shares issued Issued as .c

Tax
Face Value Ishare
Hd 50+25
$500
'
=
= 2000 shares cash 54

0.25 (B) pql 57

old 60+18
Total Ord dividend
-

=
# of shares issued XDPS
= 2000 shares x O 05-

= 100
 Minister SOCF for the YIE Both Sep x6

CFO

PBT 142

Adj for
Dep Exp 255
Amort 45
Invest gain LFVTPGD
.

115)
Investment Income (5)
Finance cost yo
Decrease in
inventory 30

Decrease in Receivables 110

Increase in contract Asset ( 25)

Decrease in
Payable (205) 230

Cash generated from Operations 372

Less : Interest Paid (28)
Tax Paid 154)
Net cashflow from Op .
Activities 290

CFI

Purchase of PPGE ( 410)

Purchase of software 480) XG X5
Purchase of Investment LFVTPGD do ) Bank -
35
Investment income Relieved 5 old (25) ( 40)
Net cash used in Threshing Activities
'

( 595) (25) (5)

CFF

Proceeds from Issue of shares 265

Issue of 9 't loan Notes 120

Ord .
dividends Paid 400 )
Net cashflow from financing Act .
285

Net Decrease in cash a cash Equivalent for the HE 30thsepx6 ( 20 )

(5)
(25J
Q .

Bigwood - - -

- - - -
- -

- - - - - - - -
-
-

- - - - -
-

-
-

I
- '

a
:/
.

Y.

I Total .

log .

old Question
#
 I
Adj #

Allowance for
NCA cost depreciation

Hd
95,00 disposals 3000
disposal 1800 told 3000

cash 10,500 deep exp

3800
op (t)
(B)
addition ¥
=
old 17000 -

/ Ud 5000
I

/
'
r

disposed off -
-
r
Cost 3000 -
r

Accdep ( 1800)
-
.

NBV Too .. .

Disposal cost -50 . - - inv f)

Loss on Disposal 1250 op ( )
→ t

Tax

cash 480 .
bid 450

(3)
peal
Ud 220
 Bigwood SOFP for the HE 3. othseptxy
Floor Area
CFI
XY x3
PBT 700
Clothing 48000 . 35000 +377 . 4

Adjust for Food 6000 , 5000 t 201 . A

3800 II
'

Dep Exp Total 54000 t 357-4

.

Loss disposals
on 1250 .

Int Exp 300 .

Increase in
Inventory ( 1400 ) Sales x4 x3
Increase in Reviewable 1504
Increase in
Payable -950 .
48502 Clothing 16000 15600 t
2.51 .

5550 . Food 7000 4000 t 75-1 .

Interest Paid Total

Less :
( )300
-230-00 19600 t 173.1 .

4802
Met cashflow from Op Act 4770
'
.
.

Operating Expasal.co#s--0PExP-xloo
Sales
CFI
purchase of PPGE . . .

( 10500 .

) XY x3
disposal cost PPGE (50 )
Net cash used in
Investing Act (1-0550) =
2750×100
T
= 1900 doo
"

23000 -19600
CFF =
11.951 .
=
9 by
-

Fro ceeds = =.
from Issue of Shares 3000 .
.

Proceeds from Issue of Loan Notes 2000 .

Ord dividend Paid

.
. . -

(Goo ) .

Net cashflow from 74400

Financing Act . . .
.

Net decrease in Castro cash equitant for

4380)
the YIE 30M Sep Xy

Cashcabhtqopej -
-

to
( 930)
doing
u n u .
→ On detailed
investigation ,
we see that
clothing floor area increased by 37% ,
But
clothing Sales just increased
by =
257 . on

other hand food floor area increased 757

just Increased
by 20% and food sales
by .

Commentary
:

> Floor area increased but no

proportionate Return
Co should have invested to
→ .
more in food compared clothing .

Increase C- ve)
→
Clothing margin decreases , means SP decreases but still
Inventory holding period of clothing
food
→ Food
margin Increases , means SP increases but still
inventory days decreases have means we some
competitive edge in .

→ Depreciation is
apportioned on the basis of floor area ,
is which unfair ,
as food shops
carry
machine which are depreciated more

furniture of
than
boutiques
ROLE decreases from 33.3% to 9.31 which be due to investment Investment
→
may
new or
timings of
.

→ Also
operating expenses as a
ef of sales increases ,
which shows
poor
cost control
operations or someone off cost at the time of Expansion
increases because loan notes issue which also decreases the interest of company
→
Gearing
Share Price reduced to
of new
;

decreases
Cover .
.

→
half because EPs a DPS .

✗4 ✗3 DPS .
To%divid= .

# shares issued
of
.

DPS =
600 600
-5000 Foo shares
DPS 12 cents
/ share 20 cents
/ share
-

=
=

As Food perishable product Inventory days good for food

→ is a Thats
why low business
.

→ The Reason for decline in share

price from $6 to $3 ,
is decrease in Eps and decrease in DPS -

Because co 's
Profits also went down & # of shares increases .

→ The Reason of share price decreases

may be
the decrease
of PIE Ratio . which means SH not
taking this Expansion positively .
CASH EQUIVALENT

All liquid Investments which are

readily convertible into cash (say 3 months)
and which doesnot
carry a
significant Risk are called cash Equivalent →
eg
-

Prize Bonds .

Buying selling of Equivalents any activity of cashflow

cash not recorded in
I
t are s .

, Cash Equivalents are

just used in the end for cash Reconciliation .

Rev Res =L 801 -

Rev Res 2000 -

-

&

K l
l Jan 016 31 Dec 016

Net
land
250%00 After deducting 201 .

#
Rev Res
deff tax

[
""
%"
"
"
"" =
2¥

P Pne

J
Rev 2500
Res
 Rev Res
-
'
depray .
Rev Res

31
't
-90£!
-

Dec 016
l Jan 016

e)
c

I
-
Plant too -900×100
>
←
.

✓ . Rev Res
'

100T 90

Rev Res 100 )

t
= 1000'

✓ RE 100 .

✓
jlllonty
→

✓
→
Kingdom

Amortized cost
"" "
Acomsitif IE ,
Ftd Aiff
4000 400 (320)=.
4080

-113
=

)
Int Exp 1400) -
-
,

PBT i

Add Int Exp

'
400 t

Cash
generated from operations xxx

less :
Int Paid ( 320)

→ Examkit ( loot ) ✓
.

Papers (Last Attempts) V

→ Latest Past 3 ACCA
global -

com -

→ Mock(online) ACCA global ✓

FT (specimen paper )

→
Ceonstructed Response Itrea ✓ Acca website
→ Book
Reading of all
t.AE/lFRS .

→ IFRS -
13 ( Fair Value)