group cash flow statements

Answer - Weller Group cash flow Weller Less income from associate 30 Less profit on disposal 854 – 305 549 W1 Impairment loss on goodwill 179 Changes in working capital --- Pension contr

Answer Chapter 20 group cash flow

Answer – Exercise - Operating Activities direct & indirect

Operating activities

Investment income (12,000)

Current service cost 20,000

Share based payments 15,000

Negative goodwill (6,000)

Exchange gain – individual company stage (4,000)

Increase in inventory (5,000)

Decrease in receivables 6,000

Increase in payables 3,000

Direct method

Cash received from customers 800,000

Cash paid to suppliers (400,000)

Cash paid to staff (100,000)

Other operating payments (126,000)

Answer - Weller

Group cash flow Weller

Less income from associate (30)

Less profit on disposal (854 – 305) (549)

(W1) Impairment loss on goodwill 179

Changes in working capital

-

Pension contribution paid (100)

Interest paid (305 – pension unwinding 29) (276)

-

Investing Activities

Acquisition of subsidiary (1,268)

Cash taken over new subsidiary 232

(W5) Dividends received from associate 10 (3,333)

-

Financing Activities

-

(357) - Thus increase in cash and cash equivalents 284

Opening cash and cash equivalents

- Closing cash and cash equivalents

-

Workings

(W1) Goodwill

Acquire subsidiary 585

Impairment loss - balancing figure (179)

-

-

FV of P investment 1,268

NCI as a proportion of NA (18% x 833) 150

- Goodwill on the acquisition 585

- (W2) Working capital changes

Inventory Receivables Payables Opening balance 7,624 4,420 2,989

Exchange difference 116 286 209

Increase - balancing figures 1,397 148 673

- - - Closing balance 9,749 5,354 4,278

- - -

(W3) Taxation paid

Liability Opening balance CL 2,566

Opening balance NCL - deferred tax 689

Thus cash paid balancing figure (1,016)

- Closing balances (3,722 + 555) 4,277

-

(W4) Non-current assets

7,996 Cash paid - balancing figure 3,161

-

- (W5) Investment in associate

Income from associate 30

-

310 Cash received - balancing figure (10)

-

-

(W6) Loans – new

- 1,994 Cash received - balancing figure 108

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