Cash Flow Statement

DSMe · 31-05-2003 1:01pm #1

Well considerin this thing is pretty likely in the hons paper , i attempted the cash flow on the 1998 paper , but now that its finishd i dont know if im right or not , anyone got the final Increase in Cash for this one?

honeymonster · 31-05-2003 1:21pm

check the difference in the bank balances

Sev · 01-06-2003 12:13pm

The Cash Flow statement, quite conveniently is one question for which you can always tell at the end if youre right or wrong. Because the increase/decrease in cash position will be identical to the increase/decrease in the Bank balance over the 2 years as given in the balance sheets.

Anyhow..

1998, Q7

The Operating Profit was 163,000
The Net Cash Flow from operating activities was 51,000
Net Cash Inflow was 24,000

Dont be at yourself · 01-06-2003 1:23pm

Its important to note that the Cash Flow Statement has a new format from this year on, and as far as I know you're expected to follow it in the LC.

Sev · 01-06-2003 1:52pm

Im not sure if Im doing it the old way or the new way. Our teacher was mentioning something of the sort, but was never really listening. Anyhow.. any chance you could show me how your cash flow looks like? The accounting book I have is centuries old.

sikes · 01-06-2003 3:55pm

the way i remeber the format is

ORTIEF

Operating Profit

Returns from investemtn and servicing of finance
Interest Paid

Taxation
Taxation Paid

Investing Activities
Receipts from disposal etc...

Equity
Dividends paid etc

Financing

Sev · 01-06-2003 4:05pm

Right.. thats where mine differs. I dont have an 'equity' section, instead I put dividends paid into "Return on investments and servicing of finance". Is this wrong? or just an alternative or what? And is that the only difference? or is there another layout?

Sev · 01-06-2003 4:20pm

Another question.. can anybody tell me what the standard procedure with "Dividends received" is? I have a few incomplete records examples in which it goes nowhere near the profit and loss account, but instead appears in the Financed by section of the balance sheet as "New Capital". Is that always the case?

What would I do with dividends received if it were to come up in a published accounts question? Does it then go into the Published P+L account?

Dont be at yourself · 01-06-2003 4:58pm

I'll try and dig up the up-to-date Cash Flow format and post it up later.

As for dividends received: I've never came across it on questions I've did (I'm not doing Q1) but to me it sounds like a profit on investment, and would be treated the same way.

Cash Flow Statement

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