Question

prepare a horizontal analysis of Cash Flows for 2010 and 2011

Horizontal Analysis of Cash Flows

	Note	2011	2010
Cash flows from operating activities		£m	£m	% change
Cash generated from operations	32	137.5	200.4	(31.4)
Finance income		0.1	0.1	0
Finance costs		(11.1)	(11.2)
Tax received/(paid)		1.3	(16.3)
Net cash generated from operating activities		127.8	173.0
Cash flows from investing activities
Purchase of property, plant and equipment		(105.3)	(72.6)
Purchase of intangible assets		(30.7)	(52.2)
Proceeds from the sale of property, plant and equipment		7.1	–
Investment in associate		(7.5)	–
Net cash used in investing activities		(136.4)	(124.8)
Cash flows from financing activities
Drawdown/(repayment) of revolving credit facility	22	66.0	(25.0)
Dividends paid	12	(35.6)	(42.0)
Purchase of shares by Debenhams Retail Employment Trust 2004	29	–	(0.8)
Finance lease payments		(1.6)	(1.6)
Debt amendment costs		(0.8)	–
Net cash generated from/(used in) financing activities		28.0	(69.4)
Net increase/(decrease) in cash and cash equivalents		19.4	(21.2)
Net cash and cash equivalents at beginning of financial year		19.7	40.8
Foreign exchange (losses)/gains on cash and cash equivalents		(0.2)	0.1
Net cash and cash equivalents at end of financial year	33	38.9	19.7

Answer 1

Answer:

	Note	2011	2010			Calculations
Cash flows from operating activities		£m	£m	% change		Change	% change
Cash generated from operations	32	137.5	200.4	(31.4)		-62.9	-31.4
Finance income		0.1	0.1	-		0	0
Finance costs		(11.1)	(11.2)	(0.9)		0.1	-0.9
Tax received/(paid)		1.3	(16.3)	(108.0)		17.6	-108
Net cash generated from operating activities		127.8	173.0	(26.1)		-45.2	-26.1
Cash flows from investing activities
Purchase of property, plant and equipment		(105.3)	(72.6)	45.0		-32.7	45
Purchase of intangible assets		(30.7)	(52.2)	(41.2)		21.5	-41.2
Proceeds from the sale of property, plant and equipment		7.1	-	na		7.1	na
Investment in associate		(7.5)	-	na		-7.5	na
Net cash used in investing activities		(136.4)	(124.8)	9.3		-11.6	9.3
Cash flows from financing activities
Drawdown/(repayment) of revolving credit facility	22	66.0	(25.0)	(364.0)		91	-364
Dividends paid	12	(35.6)	(42.0)	(15.2)		6.4	-15.2
Purchase of shares by Debenhams Retail Employment Trust 2004	29	-	(0.8)	(100.0)		0.8	-100
Finance lease payments		(1.6)	(1.6)	-		0	0
Debt amendment costs		(0.8)	-	na		-0.8	na
Net cash generated from/(used in) financing activities		28.0	(69.4)	(140.3)		97.4	-140.3
Net increase/(decrease) in cash and cash equivalents		19.4	(21.2)	(191.5)		40.6	-191.5
Net cash and cash equivalents at beginning of financial year		19.7	40.8	(51.7)		-21.1	-51.7
Foreign exchange (losses)/gains on cash and cash equivalents		(0.2)	0.1	(300.0)		-0.3	-300
Net cash and cash equivalents at end of financial year	33	38.9	19.7	97.5		19.2	97.5

Change = Amount in 2011 - Amount in 2010

% Change = (Change ÷ Amount in 2010) x 100