According to the images, answer the following questions: 1. During the year ended March 11th, 2017, how much did Sainsbury’s receive in cash due to sales of plant, property and equipment? a) 55 b) 314 c) 634 d) 466 e) None of the Above 2. During the year ended March 11th, 2017, how much net cash flow did Sainsbury’s generate from operating activities (including interest and taxes paid)? a) (63) b) 1,077 c) 1,323 d) 1,153 e) None of the above 3. In which part of the Statement of Cash Flows does Sainsbury’s classify interest received and dividend received? a) Cash Flows from Operations b) Cash Flows from Investing c) Cash Flows from Financing d) Not classified 4. What amount of long–term borrowings did Sainsbury’s repay during the year? You can ignore capital leases a) 492 b) 130 c) 466 d) 448 e) None of the above

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.23E: Unusual income statement items Assume that the amount of each of the following items is material to...
icon
Related questions
Question

According to the images, answer the following questions:

1. During the year ended March 11th, 2017, how much did Sainsbury’s receive in cash due to sales of plant, property and equipment?

a) 55

b) 314

c) 634

d) 466

e) None of the Above

2. During the year ended March 11th, 2017, how much net cash flow did Sainsbury’s generate from operating activities (including interest and taxes paid)?

a) (63)

b) 1,077

c) 1,323

d) 1,153

e) None of the above

3. In which part of the Statement of Cash Flows does Sainsbury’s classify interest received and dividend received?

a) Cash Flows from Operations

b) Cash Flows from Investing

c) Cash Flows from Financing

d) Not classified

4. What amount of long–term borrowings did Sainsbury’s repay during the year? You can ignore capital leases

a) 492

b) 130

c) 466

d) 448

e) None of the above

5. What is the difference between the Net profit for the financial year and “Net cash generated from operating activities (CFO)”?

a) Net profit is 776 greater than CFO

b) Net profit is 776 smaller than CFO

c) Net profit is 946 smaller than CFO

d) Net profit is 170 greater than CFO

e) None of the above

6.Did Sainsbury generate enough cash flow from operations to fund their investing activities?

a) Yes

b) No

7. What was the amount of cash that Sainsbury’s paid for their finance lease obligations(capital obligation plus interest) during the year ending March 11th, 2017?

a) 37

b) 8

c) 45

d) 130

e) 466

8. How much cash did Sainsbury borrow during year ended March 11th, 2017?

a) Zero

b) 172

c) 492

d) 448

e) None of the above

9. Which of the following statements is true regarding Sainsbury's indirect method Cash Flow from Operations?

a) Sainsbury subtract a decrease in their inventory

b) Sainsbury add-back depreciation of £600m as this is non-cash expense

c) Sainsbury recognized a loss on disposal of properties

d) Sainsbury add-back an increase in their trade receivables

e) None of the above

10. During the year ending March 11th, 2017, how does the closing balance for Cash in the Statement of Cash Flows compare with that in the Balance Sheet?

a) Same

b) Different by 6, due to foreign exchange translation

c) Different by 6, due to overdraft

d) Different by 1,077 due to both foreign exchange translation and overdraft

e) None of the above

Part B 

Compare the cash generation and uses of Sainsbury’s in 2017 relative to 2016. In particular, comparatively assess the strengths and weaknesses of each part (CFO, CFI and CFF).

Consolidated cash flow statement
for the 52 weeks to 11 March 2017
2017
2016
Nate
£m
Cash flows from operating activities
Cash generated from operations
Interest paid
Carparation tax paid
Net cash generated from operating activities
25a
1,323
624
(95)
(108)
(75)
1,153
(124)
392
Cash flows from investing activities
Purchase of property. plant and equipment
Purchase of intangible assets
Proceeds from disposal of property, plant and equipment
Receipt of advance dispasal proceeds
(634)
(646)
(110)
(34)
55
109
125
Acquisitian of subsidiaries, net of cash acquired
Capital return to Hame Retail Graup plc sharehalders
Share issuance costs an acquisition af Hame Retail Group plc
31
101
31
(226)
31
(3)
Investment in jaint ventures
Dispasal of subsidiaries
12
(16)
(18)
(1)
Interest received
12
18
19
Dividends and distributions received
Net cash used in investing activities
65
46
(750)
(400)
Cash flows from financing activities
Proceeds from issuance of ordinary shares
8
Drawdown of short-term borrowings
Repayment af shart-term borrawings
Repayment af long-term borrowings
Proceeds from the issue of perpetual capital securities
448
(492)
(95)
(238)
(130)
21
247
Proceeds from the issue of perpetual canvertible bonds
21
247
Purchase of awn shares
(20)
(30)
Repayment af capital element af obligations under finance lease payments
(37)
Interest elements of obligations under finance lease payments
Dividends paid on ardinary shares
Dividends paid on perpetual securities
Net cash used in financing activities
(8)
(9)
(230)
(234)
(23)
(4)
(128)
21
(466)
Net decrease in cash and cash equivalents
(63)
(136)
1,276
Opening cash and cash equivalents
Effects of fareign exchange rates
Closing cash and cash equivalents
1,140
25b
1,077
1,140
The notes an pages 111 to 177 form an integral part of these financial statements.
Transcribed Image Text:Consolidated cash flow statement for the 52 weeks to 11 March 2017 2017 2016 Nate £m Cash flows from operating activities Cash generated from operations Interest paid Carparation tax paid Net cash generated from operating activities 25a 1,323 624 (95) (108) (75) 1,153 (124) 392 Cash flows from investing activities Purchase of property. plant and equipment Purchase of intangible assets Proceeds from disposal of property, plant and equipment Receipt of advance dispasal proceeds (634) (646) (110) (34) 55 109 125 Acquisitian of subsidiaries, net of cash acquired Capital return to Hame Retail Graup plc sharehalders Share issuance costs an acquisition af Hame Retail Group plc 31 101 31 (226) 31 (3) Investment in jaint ventures Dispasal of subsidiaries 12 (16) (18) (1) Interest received 12 18 19 Dividends and distributions received Net cash used in investing activities 65 46 (750) (400) Cash flows from financing activities Proceeds from issuance of ordinary shares 8 Drawdown of short-term borrowings Repayment af shart-term borrawings Repayment af long-term borrowings Proceeds from the issue of perpetual capital securities 448 (492) (95) (238) (130) 21 247 Proceeds from the issue of perpetual canvertible bonds 21 247 Purchase of awn shares (20) (30) Repayment af capital element af obligations under finance lease payments (37) Interest elements of obligations under finance lease payments Dividends paid on ardinary shares Dividends paid on perpetual securities Net cash used in financing activities (8) (9) (230) (234) (23) (4) (128) 21 (466) Net decrease in cash and cash equivalents (63) (136) 1,276 Opening cash and cash equivalents Effects of fareign exchange rates Closing cash and cash equivalents 1,140 25b 1,077 1,140 The notes an pages 111 to 177 form an integral part of these financial statements.
Consolidated balance sheet
At 11 March 2017 and 12 March 2016
2017
2016
Note
Em
Non-current assets
Praperty, plant and equipment
Intangible assets
Investments in jaint ventures and associates
10
10,006
9,764
11
742
329
12
237
327
Available-far-sale financial assets
13
435
340
ather receivables
15a
69
103
Amounts due from Financial Services customers
15b
1,916
1,649
Derivative financial instruments
24
10
17
13,415
12,529
Current assets
Inventories
14
1,775
968
Trade and other receivables
15a
574
508
Amounts due from Financial Services customers
15h
2,686
1,695
Available-for-sale financial assets
13
100
48
Derivative financial instruments
24
94
51
Cash and cash equivalents
25t
1,083
1,143
6,312
4,413
Assets held for sale
16
10
31
6,322
4,444
Total assets
Current liabilities
Trade and other payables
Amounts due to Financial Services customers andather deposits
Borrowings
Derivative financial instruments
19,737
16,973
17a
(3,741)
(3,077)
17t
(4,284)
(3,173)
27
(172)
(223)
24
(22)
(43)
Taxes payable
(219)
(158)
Pravisians
18
(135)
146)
(8,573)
(6,720)
Liabilities held for sale
16
(4)
(8,573)
(2,251)
16,724)
Net current liabilities
(2,280)
Non-current liabilities
ather payables
Amounts due to Financial Services customers andather deposits
17a
(304)
(269)
17t
(637)
(2,039)
(582)
Barοvings
Derivative financial instruments
27
(2,190)
24
(38)
(69)
Deferred income tax liability
7
(172)
(237)
Pravisions
18
(128)
(129)
Retiremen t benefit cbligations
29
(974)
408)
(3,884)
(4,292)
Net assets
6,872
6,365
Equity
Called up share capital
Share premium account
Capital redemption reserve
19
625
550
19
1,120
1,114
20
680
680
Merger reserve
19
568
Other reserves
20
193
155
Retained earnings
Total equity before perpetual securities
Perpetual capital securities
Perpetual convertible bands
22
3,190
3,370
6,376
5,869
21
248
248
21
248
248
Total equity
6,872
6,365
The nates on pages 111 ta 177 form an integral part of these financial statements.
The financial statements on pages 106 to 177 were approved by the Board of Directars on 2 May 2017, and are signed on its behalf by:
Mike Coupe Chief Executive
Kevin O'Byrne Chief Financial Officer
Transcribed Image Text:Consolidated balance sheet At 11 March 2017 and 12 March 2016 2017 2016 Note Em Non-current assets Praperty, plant and equipment Intangible assets Investments in jaint ventures and associates 10 10,006 9,764 11 742 329 12 237 327 Available-far-sale financial assets 13 435 340 ather receivables 15a 69 103 Amounts due from Financial Services customers 15b 1,916 1,649 Derivative financial instruments 24 10 17 13,415 12,529 Current assets Inventories 14 1,775 968 Trade and other receivables 15a 574 508 Amounts due from Financial Services customers 15h 2,686 1,695 Available-for-sale financial assets 13 100 48 Derivative financial instruments 24 94 51 Cash and cash equivalents 25t 1,083 1,143 6,312 4,413 Assets held for sale 16 10 31 6,322 4,444 Total assets Current liabilities Trade and other payables Amounts due to Financial Services customers andather deposits Borrowings Derivative financial instruments 19,737 16,973 17a (3,741) (3,077) 17t (4,284) (3,173) 27 (172) (223) 24 (22) (43) Taxes payable (219) (158) Pravisians 18 (135) 146) (8,573) (6,720) Liabilities held for sale 16 (4) (8,573) (2,251) 16,724) Net current liabilities (2,280) Non-current liabilities ather payables Amounts due to Financial Services customers andather deposits 17a (304) (269) 17t (637) (2,039) (582) Barοvings Derivative financial instruments 27 (2,190) 24 (38) (69) Deferred income tax liability 7 (172) (237) Pravisions 18 (128) (129) Retiremen t benefit cbligations 29 (974) 408) (3,884) (4,292) Net assets 6,872 6,365 Equity Called up share capital Share premium account Capital redemption reserve 19 625 550 19 1,120 1,114 20 680 680 Merger reserve 19 568 Other reserves 20 193 155 Retained earnings Total equity before perpetual securities Perpetual capital securities Perpetual convertible bands 22 3,190 3,370 6,376 5,869 21 248 248 21 248 248 Total equity 6,872 6,365 The nates on pages 111 ta 177 form an integral part of these financial statements. The financial statements on pages 106 to 177 were approved by the Board of Directars on 2 May 2017, and are signed on its behalf by: Mike Coupe Chief Executive Kevin O'Byrne Chief Financial Officer
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Financial Reporting in Hyperinflationary Economies
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning