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SOLUTION – WINTER
WINTER
Statement of Cash Flow Statement for the Year Ended 30
December 2022
Operating activities #’000 #’000
PBT 1,758
Adjustments:
Depreciation for year 270
Profit on disposal of PPE (24)
Finance cost 52
Changes in working capital:
Inventory (1,412 – 1,189) (223)
Trade receivables (1,028 – 712) (316)
Trade payable (864 – 772) (92)
Cash generated from operation 1,425
Tax paid (164)
Net cash flow from operating activities 1,261
Investing activities:
Purchase of PPE (1,300)
Cash proceeds from sale of PPE 137
Net cash flow from investing activities (1,163)
Financing activities:
Share capital (800 – 600) 200
Share premium (400 – 200) 200
Dividend paid (200)
Finance cost (64)
8% loan note (800 – 500) (300)
Net cash flow from financing activities (164)
Decrease in cash & cash equivalent (66)
Cash & cash equivalent @ begin 54
Cash & cash equivalent @ end (12)
Workings:
Cash & cash equivalent:
2022 2021
Cash/bank -- 54
Bank overdraft (12) --
(12) 54
Tax paid:
@ begin 280
P or L 224
504
Tax paid (164)
@ end 340
Interest payables:
@ begin 55
Add P or L 52
107
Interest paid (64)
@ end 43
Addition to PPE using cost:
@ begin 2,460
Disposal @ cost (160)
2,300
Addition 1,300
@ end 3,600
Accumulated depreciation:
@ begin 775
Depreciation 270
1,045
Acc Dep on disposed asset (47)
@ end 998
Addition using carrying amount:
@ begin 1,685
Depreciation (270)
Disposal @ NBV (113)
1,302
Addition 1,300
@ end 2,602
KAZEEM MUYIDEEN AAT, ACA Page | 1
Determination of carrying amount of assets disposed:
Cost 160
Accumulated dep (47)
Carrying amount 113
Sales proceeds = carrying amount + profit on disposal
= 113 + 24 = 137
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