FSLC - Level 4

sophie_612

Hi,

Please can someone explain to me how to get answers in the following two questions.

Thanks
Sophie

Clintm15

I'll summarize each item:

Profit before tax - line item on SPL.
Depreciation - in the notes of the SPL.
Profit on disposal of PPE - line item on SPL.
Finance costs - line item on SPL.
Inventory adjustment - (from SFP) £22,732 - £18,608 = £4,124
Receivables adjustment - (from SFP) £18,251 - £15,162 = £3,089
Payables adjustment - (from SFP) £14,712 - £12,316 = £2,396

Cash generated from operations = the sum of all of the items above.

Tax paid - £4,120 (SFP) + £3,546 (SPL) - £3,270 (SFP) = £4,396
Interest paid - line item on SPL.

Net cash from operating activities = cash generated - tax paid - interest paid.

Proceeds on disposal of PPE - £543 (carrying amount from notes of SPL) + £139 (SPL line item) = £682
Purchases of PPE - calculation stated in the workings.
Bank loans - (from SFP) £40,000 - £18,000 = £22,000
Dividends paid - in the notes of the SPL.
Proceeds of share issue - (from SFP) (£30,000 - £20,000) + (£9,340 - £6,270) = £13,070

sophie_612

Clintm15 said:

I'll summarize each item:

Profit before tax - line item on SPL.
Depreciation - in the notes of the SPL.
Profit on disposal of PPE - line item on SPL.
Finance costs - line item on SPL.
Inventory adjustment - (from SFP) £22,732 - £18,608 = £4,124
Receivables adjustment - (from SFP) £18,251 - £15,162 = £3,089
Payables adjustment - (from SFP) £14,712 - £12,316 = £2,396

Cash generated from operations = the sum of all of the items above.

Tax paid - £4,120 (SFP) + £3,546 (SPL) - £3,270 (SFP) = £4,396
Interest paid - line item on SPL.

Net cash from operating activities = cash generated - tax paid - interest paid.

Proceeds on disposal of PPE - £543 (carrying amount from notes of SPL) + £139 (SPL line item) = £682
Purchases of PPE - calculation stated in the workings.
Bank loans - (from SFP) £40,000 - £18,000 = £22,000
Dividends paid - in the notes of the SPL.
Proceeds of share issue - (from SFP) (£30,000 - £20,000) + (£9,340 - £6,270) = £13,070

@Clintm15 thanks so much for your help i really appreciate it