1. avatar says

    Sir you said that when we start a statement of cash flow the 4th figure to write down is ‘net cash flow for the year” I would like know how u got net cash flow for year (32) in example 6 please?

    • Profile photo of MikeLittle says

      By putting in the “Cash and equivalents carried forward”, then the “Cash and equivalents brought forward” that then means that you can arrive at “Net cash flow for the year”

      Can you agree “Cash and equivalents brought forward” as $81?

      Can you see the cash balance at the end of the year is $17 (in the current assets)?

      And you can see the overdraft amount of $60 carried forward (in the current liabilities)?

      And you’ve read note 3 on page 112?

      Then ……

  2. avatar says

    Hello Sir,

    The increase in receivables should be 92 according to the notes and not 32.
    The original figures are:
    2008 – 492
    2009 – 584
    There fore the net cash flow should be 11 negative according to notes answers.


  3. Profile photo of Accountmanaic says

    Sir, i understand how you arrived at all the figure except for the increase in receivable which i was thinking should be (584-492) 92…. i cant figure out how you got the 32…. i know i missing something in there. do help me please.

      • avatar says

        Same here – I think the notes have been updated since the lecture – check the answers; it’s 92 there (although you then end up with a cash c/fwd of -11. This is also in the answer and you have to adjust for the overdraft (60) from the bank which was not in the original lecture.

        All good!

        Fabulous lecture Mike. Thank you!

      • avatar says


        I have a comment on the notes answers as the 60 at the bank at the end of year 2009 isn’t an overdraft and should add up to the 32 and 17 giving a total of 109 !
        we deduct that from the 81 opening balance to arrive at a positive net cash flow of 28 (if receivables figure in the cash flow statement is 92 negative)

        Right Mike?


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