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Statement of Cashflows

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Statement of Cashflows

  • This topic has 5 replies, 2 voices, and was last updated 9 years ago by MikeLittle.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • October 12, 2015 at 8:07 am #275957
    mansoor
    Participant
    • Topics: 424
    • Replies: 542
    • ☆☆☆☆

    there is a question in bpp f7 text on cashflow statement. its a worked example. i have worked out everything but i cant understand where he gets his opening cash/cash equivalent figure

    he has a figure of (97).

    and while playing with numbers, the only thing i cd come up with is that he has taken the cash balance plus the bank OD.
    —————————-x2——–x1
    short term invest——-50——–Nil
    Cash———————–2 ——- 1

    under current liabilities he has:

    bank OD —————-85———98

    so 98-1=97

    i guess if we have OD, is that always deducted from cash in hand to get the final cash figures??

    October 12, 2015 at 9:55 am #275973
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23327
    • ☆☆☆☆☆

    Not necessarily always though I have to admit that I ALWAYS treat the overdraft as “Cash and cash equivalents”

    I’m told that, in practice, it’s sometimes treated as Financing but, as I just said, I ALWAYS treat it as C + CE

    October 12, 2015 at 9:56 am #275974
    mansoor
    Participant
    • Topics: 424
    • Replies: 542
    • ☆☆☆☆

    i will follow the leader in this case…:)

    October 12, 2015 at 10:04 am #275979
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23327
    • ☆☆☆☆☆

    Not a bad decision … but you may call me Sensei

    October 12, 2015 at 10:38 am #275987
    mansoor
    Participant
    • Topics: 424
    • Replies: 542
    • ☆☆☆☆

    even better ….

    October 12, 2015 at 3:14 pm #276036
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23327
    • ☆☆☆☆☆

    🙂

  • Author
    Posts
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