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Cash and Cash equivalent-Cash flow

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Cash and Cash equivalent-Cash flow

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • March 12, 2017 at 3:46 pm #377941
    katalinka
    Member
    • Topics: 39
    • Replies: 40
    • ☆☆

    Dear Sir,

    Could you please explain how we calculate the cash and cash equivalent for the beginning of the period in the below example?
    I am able to calculate all of the steps except this part. The correct answer is 634…

    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
    Profit before tax 15,000
    Less tax 4,350
    Profit for the year 10,650

    Statement of financial position as at 31 October
    20X7 20X6
    $’000 $’000
    Assets
    Non-current assets 44,282 26,574

    Current assets
    Inventory 3,560 9,635
    Receivables 6,405 4,542
    Cash 2,045 1,063
    12,010 15,240

    Total assets 56,292 41,814

    Equity and liabilities
    Capital and reserves
    Ordinary share capital 19,365 17,496
    Retained earnings 17,115 6,465
    36,480 23,961
    Non-current liabilities
    Loan 8,000 10,300

    Current liabilities
    Bank overdraft 1,230 429
    Trade payables 7,562 4,364
    Taxation 3,020 2,760
    11,812 7,553

    Total equity and liabilities 56,292 41,814
    Additional information:
    (1) Depreciation expense for the year was $4,658,000
    (2)
    Assets with a carrying value of $1,974,000 were disposed of at a profit of $720,000

    Thank you for all your help! I am working full time unfortunately not yet in accounting related field and your lectures are greatly appreciated!
    I’ve watched some of them already a couple of times 🙂

    with kind regards,
    Katalin

    March 13, 2017 at 12:07 am #377983
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    Since the Statements of Financial Position for both years are given in full (and balance) then the cash and cash equivalents at the start of the second year will be those at the end of the first year, then they are simply the cash (1063) less the bank overdraft (429) which is 634.

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Viewing 2 posts - 1 through 2 (of 2 total)
  • The topic ‘Cash and Cash equivalent-Cash flow’ is closed to new replies.

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