Leaving Cert Accounting Cash Flow Statements: Cash Flow Statement

The followi

Question

Cash Flow Statement

The following information has been extracted from the books of Allen Ltd.

Profit and Loss (extract) for year ended 31/12/2008

Operating profit
€175,000
Interest paid
(68,000)
Taxation
(16,000)
Dividend paid
(141,000)
Retained Profit for year
€20,000
Profit and Loss Balance 01/01/2008
€108,000
Profit and Loss Balance 31/12/2008

Balance Sheets as at
31/12/2008                     €  31/12/2007                      €

Fixed Assets
Land and Buildings                          890,000                   720,000
Less depreciation provision                (85,000)                  (805,000)  (75,000)                  (645,000)

Current Assets
Stock                                                        43,000                      36,000
Debtors                                                    45,000                      39,000
Cash                                                        19,000                     17,000

Less Creditors: amounts falling due within 1 year
Creditors                                                 75,000                     15,000
Taxation                                                  16,000                        15,000
(101,000)                                          (70,000)

Net Current Assets                             93,000                    107,000
Total Net Assets                                   898,000                   752,000

Financed By:
Creditors: amounts falling due after more than 1 year
% Debentures 
Capital and Reserves
Ordinary Shares capital issued               90,000                     110,000
Ordinary Share capital issued             620,000                     620,000
Profit and Loss Account                      188,000                     752,000
898,000

You are required to:

(a) Reconcile the Operating Profit to Net Cash Inflow from operating activities
(b) Prepare the Cash Flow Statement of Allen Ltd for the year ended 31/12/2008 using the following headings:
1. Operating activities
2. Returns on investment and servicing of finance
3. Taxation
4. Capital Expenditure and Financial Investment
5. Equity Dividends paid
6. Financing
(c) Reconcile the Net Cash Flow to Movement in Net Debt.

Cash Flow Statement The following information has been extracted from the books of Allen Ltd - Leaving Cert Accounting - Question 7 - 2009

Worked Solution & Example Answer:Cash Flow Statement The following information has been extracted from the books of Allen Ltd - Leaving Cert Accounting - Question 7 - 2009

Reconcile the Operating Profit to Net Cash Inflow from operating activities

Prepare the Cash Flow Statement of Allen Ltd for the year ended 31/12/2008

Reconcile the Net Cash Flow to Movement in Net Debt

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