1.1 Cash flow from investing activities include the following but:
- Purchases of property, plant, and equipment
- Payments for businesses acquired
- Cash equivalents
1.2 In cash flows, when a firm invests in fixed assets and short-term financial investments results in (a) Increased Equity
- Increased Liabilities
- Decreased Cash
1.3 Cash flow example from an operating activity is
- Interest Paid on deposits by a Bank
- Issue of Equity Share Capital
- Purchase of Own Debenture
1.4
|
Balance sheet extracts as at 31 December |
2008 |
2009 |
|
|
R |
R |
|
Non-current assets |
19,000 |
20,000 |
|
|
|
|
|
Current assets |
|
|
|
Inventories |
4,000 |
5,000 |
|
Trade receivables |
2,500 |
3,000 |
|
Prepayments |
300 |
500 |
|
Current liabilities |
|
|
|
Trade payables |
9,000 |
4,000 |
|
Accruals |
200 |
700 |
The operating profit for 2009 was R17,000 and the
(a)
(c) Cash flow R22,200
1.5 See previous question- 1.4. If the company’s
- Cash inflow R10,800
- Cash inflow R12,800
- Cash flow R22,200
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