IFRS PRACTICAL IMPLEMENTATION GUIDE AND WORKBOOK

45

Chapter 5 / Cas h Flow Statemen ts (lAS 7)

Cash fl ows from investing activities: Proceeds from the sale of equipment Dividends received Cash flows from investing activities Cash jl ows from fi nancing activities: Dividends paid

11,250 4500

(18 000)

Cash !lows used in financing activities Net increase in cash and cash equiva lents Cash and cash equivalents, beginning of year

(l8..QQQ)

3,000

---l..iQQ $~

Cash and cash equivalents, end of year

15,000 (2,250) 3,000 18,750 (7,500) .J..QQQ Details of the computations of amounts shown in the statement of cash !lows fo llow: Cash Received from Customers during the Year Credit sales Plus: Accounts receivable, beginning of year Less: Accounts receivable, end of year Cash collections from customers during the year Cash Paid to Suppliers and Employees Cost of sales Less: Inventory, beginning of year Plus: Inventory, end of year Plus: Accounts payable, beginning of year Less: Accounts payable, end of year Plus: Administrative and selling expenses paid Cash paid to suppliers and employees during the year Interest paid equals interest expense charged to the income statement (per additional information) 45,000 3,750 (Uill!)

$41.250

$30 000

$...l.llilQ

Income Taxes Paid during the Year Tax expense during the year (comprising current and deferred portion s)

6,000 1,500 3,000

Plus: Income taxes payable, beginning of year Plus: Deferred taxes payable, beginning of year Less: Income taxes payable, end of year Less: Deferred taxes payable, end of year

(3,000) (4 500)

Cash paid toward income taxes Proceeds from sale of equipment (per additional information) Dividends received during 2005 (per additional information) Dividends paid during 2005 (per additional information) c . Ind ire ct Method

$ 3000 $l..l.,22Q $~ $ 18 000

Tremendous Enterprises II/c. STATEMENT OF CASH FLOWS For the Year Ended December 31, 2005

Cash flows fro m operating activities: Net income before taxation Adjustments for:

$ 24,750

Depreciation of property, plant, and equipment Amortization of intangible assets Investment income Interest expense Operating income before changes in operating assets and liabilities Increase in accountsreceivable Increase in inventories

3,000 750 (4,500)

--lJ)QQ

27,000 (3,750) (750) uiza» 11,250 (3,000) ..L1.QQQl

Decrease in accounts payable Cash provided by operations Interest paid Income taxes paid

Net cash fromoperating activities Cash flow s from investing activities: Proceeds from sale of equipment Dividends received Cash from investing activities Cash flow s f romfinancing activities: Dividends paid Cash used in financing activities Net increase in cash and cash equivalents Cash andcash equivalents. beginning of year Cash andcash equivalents. end of year

11,250 -A,2QQ

(.lJWQQ)