ACCA FR · Guided practice (Show me how)
Chapter 4: Statement of cash flows (IAS 7)
Statement of cash flows extracts by the indirect method
Cash flows from operating, investing and financing activities. The following information relates to Geofrost, a limited liability company, for the year ended 31 October 20X7.
Extracts from the statement of profit or loss for the year ended 31 October 20X7 ($000):
Extracts from the statement of financial position as at 31 October:
Additional information: depreciation expense for the year was $4,658,000. Assets with a carrying value of $1,974,000 were disposed of at a profit of $720,000.
Prepare the cash flows from operating activities, and the cash flows from investing activities and from financing activities, using the indirect method.
Example 1: operating activities
Prepare the operating activities extract of Geofrost's statement of cash flows for the year ended 31 October 20X7.
Example 2: investing activities
Calculate Geofrost's payments for property, plant and equipment, disposal proceeds and net cash flow from investing activities for the year ended 31 October 20X7.
Example 2: financing activities
Calculate Geofrost's dividends paid and net cash flow from financing activities for the year ended 31 October 20X7.
Check against the statement of financial position
Calculate Geofrost's net movement in cash and cash equivalents for the year ended 31 October 20X7.
Opening this exercise…