Cash flow statement I have asked this previously just now but the answer didnt m

Question

Cash flow statement

I have asked this previously just now but the answer didnt match the increase in cash, so I am reposting this. :)

The financial statements of Royce plc have been prepared as follows Statements of financial position as at 30 June 2012 2011 $000 $000 000 $o00 Non-current assets: Property, plant and equipment at cost 6,600 (1,680) 5,880 (1,380) Accumulated depreciation 4,920 540 420 4,500 480 300 Development costs Investments Current assets: Inventory Trade receivables Cash 1,665 1,446 1,872 1,188 3,102 3,120 9,000 8,382 Equity and reserves Ordinary shares of $1 each Share premium account Retained earnings Non-current liability: 7% debentures Current liabilities: Trade payables Taxation Dividend declared Bank overdraft 3,000 600 3,084 6,684 2,622 5,592 2,700 270 1,200 1,632 507 1,104 396 90 2,316 9,000 1,590 8,382 Further information (a)Extract from statement of income $000 1,008 36 (120) 144 780 Operating profit Dividend received Premium on Debentures Interest paid Profit before taxation Income tax Profit after tax (b) Operating expenses written off in the year include the following: Amortisation of development costs 522 $000 102 318 Depreciation of property, plant and equipment (c) Equipment which had cost $240,000 was sold in the year, incurring a loss of $156,000 (d) The debentures were redeemed at a premium of 10% Required: a. Prepare a statement of cash flows for the year ended 30 June 2012, in accordance with IAS 7 sh Flows using the indirect method. (15 marks)

Explanation / Answer

Statement of Cash Flow:

Amount Amount Profit after Tax 522 Add: Depreciation 318 + Amortization 102 - Dividend received (36) + Premium on Debenture 120 + Decrease in inventory 207 - Increase in Receivables (258) + Increase in trade payables 528 + Increase in Tax Payable 111 + Increase in Bank OD 117 Net cash from Operating Activities: 1731 Cash Flow from Investing Activities: -Purchase of Plant (936) +Sale of Equipment 66 -Development Cost (60) - Purchase of Investment (120) + Dividend received 36 Cash flow from Investing Activities (1014) Cash Flow from Financing Activities +Issue of Shares 630 - Redemption of Debenture (1,320) - Dividend Paid (60) Cash flow from Financing Activities (750) Total Cash flow (33) + Opening Balance of Cash 42 Closing Balance of cash 9

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