Question

ABC Ltd has provided the following information: Income Statement for the year ended 30 June 2018 $000 Revenue 25460 Cost of Sales 9810 Gross Profit 15650 Depreciation 7860 Other Expenses 1080 Gain on disposal of Non Current assets 150 6860 Operating Profit Finance Charges 2250 Profit before Tax 4610 Taxation 1030 Profit for the year 3580

Answer 1

ABC Ltd
Cash Flow Statement
For the year ended June 30, 2018
Cash flows from operating activities:
Net profit before tax and extraordinary items		$4,610,000
Adjustments for:
Depreciation Expenses	$7,860,000
Gain on disposal of non-Current Asset	($150,000)	$7,710,000
Operating profit before working capital changes:		$12,320,000
Increase in Inventories	($2,140,000)
Increase in Trade Receivables	($2,780,000)
Increase in Trade Payable	$1,000,000	($3,920,000)
Cash generated from operations		$8,400,000
Tax Paid		($940,000)
Net cash provided by operating activities		$7,460,000
Cash flows from investing activities
Purchase of Non-Current Assets	($34,390,000)
Proceeds from the sale of Non-Current Assets	$300,000
Net cash used in investing activities		($34,090,000)
Cash flows from financing activities
Dividends paid	($1,600,000)
Issue of Share at a Premium	$10,500,000
Debenture Issued	$15,000,000
Net cash provided by financing activities		$23,900,000
Decrease in cash and cash equivalents during the year		($2,730,000)
Cash and Cash equivalent, 2017		$780,000
Cash and Cash equivalent, 2018		($1,950,000)