Commenting on cash flow statements
wonderwife2008
Registered Posts: 41 Regular contributor ⭐
Where do I start? I understand the logic behind it but not how to go about presenting this. I have no comparative year but my data is as follows: I'd be grateful if anyone could give me some hints or tips on how to go about this. I feel like a dunce :crying:
Newton Ltd
Company Cash Flow Statement for the year ended 31 December 2005
£000
Net cash from operating activities 3,638**
Investing Activities
Purchase of Non-current Assets (5,518)
Proceeds from Sale of Non-current Assets 500
Net cash used in investing activities (5,018)
Financing activities
Proceeds from the issue of share capital 595
Proceeds from long term borrowings 505
Dividends paid (30)
Net cash (used in)/from financing activities 1,070
Net increase/(decrease) in cash and cash equivalents (310)
Cash & cash equivalents at the beginning of the year (110)
Cash & cash equivalents at the end of the year (420)
**Reconciliation of profit from operations to net cash flow from operating activities
£000
Profit from operations 2,440
Adjustments for:
Depreciation 2640
Loss on sale of non-current asset 250
Increase in inventories (1,522)
Increase in trade receivables (760)
Increase in trade payables 1,225
Cash (used in)/from operations 4,273
Interest paid (235)
Tax paid (400)
Net cash (used in)/from operations 3,638
Newton Ltd
Company Cash Flow Statement for the year ended 31 December 2005
£000
Net cash from operating activities 3,638**
Investing Activities
Purchase of Non-current Assets (5,518)
Proceeds from Sale of Non-current Assets 500
Net cash used in investing activities (5,018)
Financing activities
Proceeds from the issue of share capital 595
Proceeds from long term borrowings 505
Dividends paid (30)
Net cash (used in)/from financing activities 1,070
Net increase/(decrease) in cash and cash equivalents (310)
Cash & cash equivalents at the beginning of the year (110)
Cash & cash equivalents at the end of the year (420)
**Reconciliation of profit from operations to net cash flow from operating activities
£000
Profit from operations 2,440
Adjustments for:
Depreciation 2640
Loss on sale of non-current asset 250
Increase in inventories (1,522)
Increase in trade receivables (760)
Increase in trade payables 1,225
Cash (used in)/from operations 4,273
Interest paid (235)
Tax paid (400)
Net cash (used in)/from operations 3,638
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