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andrew412.
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xMa87x
- Topics: 2
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Hello,
I have been given the group PL and BS as at 30 09 13, and I am asked to prepare the consolidated cash flow as at the same date.
All assets and liabilities have increased from 2012 to 2013 with the bank going from positive 1.2k in 2012 to overdrawn to 32.4k in 2013, most likely (my assumption) due to the acquisition of the new company.
It looks very straightforward because the only additional note given says that fixed assets costing 11k were sold during the year for 2k, and dep’n to 30 09 13 was 7.6k.
My concern arises on the RE figures in the BS showing a PL of 20.2 (2013) and 6 (2012), whereas the retained profit figure for the year in the PL is 14.2 (2013) and 4.4 (2012)…
Is there a link how I can put logic and arrive to these figures please?And am I supposed to calculate the cost of the new acquisition from the info provided?
Many thanks!
MikeLittle
- Topics: 26
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This is NOT an F7 question – consolidated cash flows are not F7. They only appear at P2
andrew412
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Your retained earnings have increased by the profit for the year. You usually look at retained earnings to calculate dividends paid. In this case opening RE (6)+profit for year(14.2)-dividends(must be zero to balance)=closing RE(20.2).
If the question does not mention a subsidiary acquisition there is none.
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