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Cash Flow Statement

JJack7y ago
Hi John, I just can't work out how to calculate payments to acquire non current assets. The answer is 24340 which needs to be subtracted from the cash fow statement. Any help would be much appreciated. 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 Complete the cash flow statement of cash flows for the year ended 31 October 20X7 for Geofrost.
John MoffatJohn MoffatTutor7y ago#1
You have obviously not watched my free lectures on statements of cash flows, because I work through a very similar example and show how to calculate the acquisitions of non-current assets. The opening carrying value was 26,574. They charged depreciation during the year of 4,658 and sold assets with a carrying value of 1,974. Therefore, had there been no acquisitions, the carrying value at the end of the year would have been 26,574 - 4,658 - 1,974 = 19,942. The actual carrying value at the end of the year was 44,282. Therefore they must have made acquisitions of 44,282 - 19,942 = 24,340. Do watch my free lectures - they are a complete free course for Paper F3 and cover everything needed to be able to pass the exam well.
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