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Hi Mike
from the september 2016 exam past paper qu 11, top trades co,
it says statement of cash flow year end 31.12.20×7
net flow from op activities 995
net cash used in investing activities (540)
Net cash used in Finance (200)net increase in cash and cash equ 255
cash and cash equ at start of period 200
cash and cash equ at end of period 455which of the following is correct
a company has good working capt
b net cash generated from finance activities has been used to fund additions to n c a
c net cash generated from operating activities used to fund additions to nca
d exisiting non current assets sold to cover the cost of the additions to ncaanswer is c how do I answer this question is it the cash at the start equal cash at the end ?increase in net cash, I am really guessing at this one? thanks
Aphrodite cash gen unit impairment loss
on section b no 20 answer is $262.500 (a) looks like they have match the g/w impairment back to the cost and 35m for the damaged plant which I understand I think,
its the remaining 100 m allocated proportionately I am struggling with a bit Many thanks for any help and clarification.Look at these 2 options:
“b net cash generated from finance activities has been used to fund additions to n c a
c net cash generated from operating activities used to fund additions to nca”Financing activities is a negative and …
Operating activities is a positive
So these two statements are directly contradictory
So one or the other must be incorrect – they cannot both be right
Now, given that investing activities is an outflow, the activities that finance those investing activities MUST be a positive flow
So the answer must be C – the positive flow
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