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Hello!
I had a question about the statement of cash flows question (section B) on the ‘extra questions for F3’ on the ACCA website.
Could you explain how to get the ‘payments to acquire non current assets.’ I see the answer but can’t see how they got there.
I understand from your lecture doing the t-account to find the missing figure for acquisitions (you’re given the sales NBV) but in the example on the mock test I can’t come to the correct answer.
Balance carried forward is 26574
Acquisition xDepreciation is 4658
Sales x
Balance bought forward is 44282NB: Assets with a carrying value of $1,974,000 were disposed of at a profit of $720,000
I hope this makes sense…i’m probably missing something really obvious! Thank you.
The carrying value at the start of the year was 26,574.
During the year, they sold assets with a carrying value of 1,974, and the charged depreciation of 4,658. Both of these reduce the carrying value carried forward, and so would end up with a carrying value of 26,574 – 1,974 – 4,658 = 19,942.
The actual carrying value at the end of the year is 44,282, and so the difference must be the cost of the assets purchased: 44,282 – 19,942 = 24,340.
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