• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

June 2025 ACCA Exams

How was your exam? Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

Cash flow adjustments – BPP Hill question

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Cash flow adjustments – BPP Hill question

  • This topic has 3 replies, 2 voices, and was last updated 1 year ago by Stephen Widberg.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • November 10, 2023 at 12:45 am #694613
    nalanono
    Participant
    • Topics: 2
    • Replies: 7
    • ☆

    Hello tutor,

    I need your help to understand working capital adjustments.

    Statement of cash flow is as follows :
    Increase in Inventories: -842.40
    Increase in trade receivables -379.2
    Increase in trade payables 224.20

    When subsidiary is disposed and inventory’s YE figure decreases in the statement of financial position (we need to take off the inventory on disposed subsidiary from groups BS)why the adjustment of £200.5 is increasing the difference of inventories in statement of cashflow to £1042.9 ?
    The same with receivables, subsidiary’s Trade debtors are removed from groups BS hence the difference op-cl balance is smaller, but cashflow adjustment increase cash to £560.5.

    I cannot logically explain how it works, can you please explain ?

    November 10, 2023 at 7:45 am #694619
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3409
    • ☆☆☆☆☆

    On a sale of sub, the new owner will receive the sub’s inventory , receivables etc.

    So, on a sale:

    OPENING INVENTORY MINUS INVENTORY OF SUB SOLD +/- CASH PAID/RECEIVED = CLOSING INVENTORY

    You may find it useful to watch our cash flow lecture again

    🙂

    November 10, 2023 at 11:05 pm #694657
    nalanono
    Participant
    • Topics: 2
    • Replies: 7
    • ☆

    Thank you for the advice. I watched the lecture and all does make sense now.

    Many thanks 🙂

    November 11, 2023 at 7:00 am #694660
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3409
    • ☆☆☆☆☆

    🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Cash flow adjustments – BPP Hill question’ is closed to new replies.

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • EricObi on IAS 37 – Best estimate – ACCA Financial Reporting (FR)
  • Ken Garrett on The nature and structure of organisations – ACCA Paper BT
  • John Moffat on MA Chapter 4 Questions Cost Classification and Behaviour
  • maryrena77 on The nature and structure of organisations – ACCA Paper BT
  • vi234 on MA Chapter 4 Questions Cost Classification and Behaviour

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in