Splash plc: Cash Flow Statement for the year ending 31 December 2013 Cash flows from operating activities OROperating loss(3078)Depreciation1334Working capital changes (net)838Cash outflow from operations(906)Cash flows from investing activitiesPurchase of non-current assets(1202)Net cash outflow from investingactivities(1202)Cash flows from financing activitiesIssue of ordinary shares6042Loan repayment(1216)Net cash inflow from financingactivities4826Net increase in cash2718Cash at beginning of period974Cash at end of period3692 For 2013, explain briefly where the company’s cash flow came from, how it was spent, and how the overall cash position has improved in a year when it made a loss. Discuss whether such a cash flow is healthy for a company such as Splash plc.

In 2013, Splash plc's cash flow came mainly from financing activities, specifically the issue of…

Answered: Cash flows from operating activities…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 13P: Statement of Cash Flows The following are Mueller Companys cash flow activities: a. Net income,...

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Splash plc: Cash Flow Statement for the year ending 31 December 2013

Cash flows from operating activities	OR
Operating loss	(3078)
Depreciation	1334
Working capital changes (net)	838
*Cash outflow from operations*	*(906)*
Cash flows from investing activities
Purchase of non-current assets	(1202)
*Net cash outflow from investing* *activities*	*(1202)*
Cash flows from financing activities
Issue of ordinary shares	6042
Loan repayment	(1216)
*Net cash inflow from financing* *activities*	*4826*
Net increase in cash	2718
Cash at beginning of period	974
Cash at end of period	3692

For 2013, explain briefly where the company’s cash flow came from, how it was spent, and how the overall cash position has improved in a year when it made a loss. Discuss whether such a cash flow is healthy for a company such as Splash plc.

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