FIRST:
Non-current assets: Always check whether more non-current assets were bought, not
only from additional information
Purchase of NCA = Closing NBV + Depreciation charge + NBV disposed – Opening NBV
Closing NBV of a NCA = Opening NBV + Purchases – Disposed NBV – Depreciation
Expense for current year
Cash flow statement for (company) for the year ending (date)
If something else is included in something you need to adjust
e.g. After adjusting for accrued interest, the balance on trade payables brought down at 1
January 2019 was £1,742.5 and at 31 December 2019 it was £1,665. The decrease in trade
payables is therefore £78
Be careful with £000 adjustment
Cash flow from operations
£000 Working
Profit before tax IS
Depreciation IS
Interest expense IS (is the same if it says expense payable)
Loss/Gain on disposal of non- Loss IS
current asset (Gain)
Decrease/Increase in Decrease From SOFP: 2018 - 2017
inventories (Increase)
Increase/Decrease in trade Decrease From SOFP: 2018 - 2017
receivables (Increase)
Increase/Decrease in trade Increase From SOFP: 2018 - 2017
payables (Decrease)
Interest paid () Beg interest payable + interest expense –
(accrued is the same, but be end interest payable =
careful with £000 adjustment)
Tax Paid () Beg tax payable + Tax expense – end tax
payable =
Cash flow from operations xxx
Cash flow from investing activities
£000 Working
Proceeds from sale of non- NBV of NCA sold + gain/ - loss
current asset
Purchase of non-current asset () Clo NBV + depreciation charge (see above)
+ NBV of disposed – opening NBV =
(NBV is cost less dep.)
Cash flow from investing xxx
activities
Cash flow from financing activities
Non-current assets: Always check whether more non-current assets were bought, not
only from additional information
Purchase of NCA = Closing NBV + Depreciation charge + NBV disposed – Opening NBV
Closing NBV of a NCA = Opening NBV + Purchases – Disposed NBV – Depreciation
Expense for current year
Cash flow statement for (company) for the year ending (date)
If something else is included in something you need to adjust
e.g. After adjusting for accrued interest, the balance on trade payables brought down at 1
January 2019 was £1,742.5 and at 31 December 2019 it was £1,665. The decrease in trade
payables is therefore £78
Be careful with £000 adjustment
Cash flow from operations
£000 Working
Profit before tax IS
Depreciation IS
Interest expense IS (is the same if it says expense payable)
Loss/Gain on disposal of non- Loss IS
current asset (Gain)
Decrease/Increase in Decrease From SOFP: 2018 - 2017
inventories (Increase)
Increase/Decrease in trade Decrease From SOFP: 2018 - 2017
receivables (Increase)
Increase/Decrease in trade Increase From SOFP: 2018 - 2017
payables (Decrease)
Interest paid () Beg interest payable + interest expense –
(accrued is the same, but be end interest payable =
careful with £000 adjustment)
Tax Paid () Beg tax payable + Tax expense – end tax
payable =
Cash flow from operations xxx
Cash flow from investing activities
£000 Working
Proceeds from sale of non- NBV of NCA sold + gain/ - loss
current asset
Purchase of non-current asset () Clo NBV + depreciation charge (see above)
+ NBV of disposed – opening NBV =
(NBV is cost less dep.)
Cash flow from investing xxx
activities
Cash flow from financing activities
