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MikeLittle.
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- October 12, 2015 at 8:07 am #275957
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 ——- 1under 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 #275973Not 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 #275974i will follow the leader in this case…:)
October 12, 2015 at 10:04 am #275979Not a bad decision … but you may call me Sensei
October 12, 2015 at 10:38 am #275987even better ….
October 12, 2015 at 3:14 pm #276036🙂
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