Cash Flow Statements

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Im having major problems getting my head around these at the moment. My main problem seems to be finding missing figures (I never was any good at incomplete records questions at Intermediate level). <BR><BR>I had a go at part C of the June 2005 exam earlier on today. I didn't have any trouble with task 1.5 but I'm very confused about where all the figures come from for the actual cash flow statement. In particular, I can't work out where the figure of £4,618,000 has come from in relation to payments to acquire tangible assets. It's probably really obvious but I just can't see it at the moment. The workings shown on the suggested answers don't make any sense to me. Could someone explain it any better for me?<BR><BR>

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Cash Flow Statements

    Hi I have had a look at June 05 question 1.6 oh dear how quickly one forgets.<BR><BR>Any way this is how you reach 4618 <BR><BR>Opening 05 13552 - given<BR>Add Dep 1698 - given<BR>Add NBv of Disposal 580 - see notes given cost and acc dep<BR>sub total 15810<BR>less opening 04 11192<BR>Equals 4618 <BR><BR>Hope this helps, best wishes
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Cash Flow Statements

    Many thanks.<BR><BR>It is starting to make a little bit more sense now. I was really confused because in the Osborne tutorial book, all the questions either told you the cost of any new assets purchased during the year or gave a breakdown of the cost and depreciation to date in the balance sheets so it completely threw me when this information wasn't available.<BR><BR>It just goes to show how important it is to do as many practice exam questions as possible so you're prepared for a variety of scenarios.<BR><BR>Thanks again for your help.

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