FSLC - Level 4

sophie_612
sophie_612 Registered Posts: 136 Dedicated contributor 🦉
Hi,

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

Thanks
Sophie





Comments

  • Clintm15
    Clintm15 Registered Posts: 248 Dedicated contributor 🦉
    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

    AAT
    Level 2 - 2011
    Level 3 - 2012
    Level 4 - 2013

    ACCA
    F4 - Corporate Law - Dec 2015 (passed)
    F5 - Performance Management - Dec 2014 (passed)
    F6 - Taxation - Dec 2013 (passed)
    F7 - Financial Reporting - Jun 2014 (passed)
    F8 - Audit & Assurance - Dec 2015 (passed)
    F9 - Financial Management - Jun 2015 (passed)
  • sophie_612
    sophie_612 Registered Posts: 136 Dedicated contributor 🦉
    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
Privacy Policy