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For the answer to ‘Proceeds from sale of non-current assets’ I keep getting 17708 but the answer is 24340. How was this calculated? I don’t understand the last three either (cash/cash equivalents – movement/beginning/end), but given I can’t get the assets part right, these might depend upon it.
The answer is not 24340 – you are reading the wrong line!!
The correct answer is 2694.
The reason is that the assets sold had a carrying value of 1974, and they were sold at a profit of 720. If they were sold at a profit then they must have been sold for more than 1974.
The proceeds from sale must be 1974 + 720 = 2694.Its easier with a T-account which I cannot type on here (and have you watched my lecture because I go through an example just like this one?)
Anyway….the balance brought forward for NCA’s is 26574. It goes down because of depreciation (4658) and also because we remove the carrying value of the assets sold (1974).
This would give a balance of 26574 – 4658 – 1974 = 19942.However the closing balance on NCA’s is 44282.
So it must mean that they had acquisitions of 44282 – 19942 = 24340.
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