Summary Cash Flow Statement Preparation, Workings & Analysis - AC100 Elements Of Accounting And Finance (Ac100)

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