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Mocha Dec 2011

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Mocha Dec 2011

  • This topic has 2 replies, 2 voices, and was last updated 11 years ago by MikeLittle.
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  • May 26, 2014 at 9:02 pm #171075
    nari
    Member
    • Topics: 259
    • Replies: 175
    • ☆☆☆

    Hello, in this cash flow question , there is the sale of a ppe item valued at 4,000 with the proceeds being 8,100 thereby giving a profit of 4,100 which is shown as a negative in the operating activities in the cash flow.
    In comparison, there is the sale of an investment valued at 3,000 which was sold for 3,400 but the investment income shown in the cash flow is 1,100 rightfully as a negative.
    My question is , why isn’t there a figure of 400 [3,400- 3,000] in the cash flow statement to show the profit on sale of investment ( as it is done for profit on sale of ppe)?

    May 26, 2014 at 9:04 pm #171076
    nari
    Member
    • Topics: 259
    • Replies: 175
    • ☆☆☆

    never mind, the 400 was included in the investment income value of 1,100.

    May 27, 2014 at 7:45 pm #171252
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23345
    • ☆☆☆☆☆

    Hmmmm! Well done for spotting it 🙂

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