P GROUP

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 20X8

$'000 $'000
Cash flows from operating activities:
Profit before tax 4,800
Adjustments for:
Depreciation 2,200
Impairment loss (W1) 180
Share of profit of associate -800
Foreign exchange gain (W5) -30
6,350
Increase in inventories(W4) -800
Increase in trade receivables(W4) -600
Increase in trade payables(W4) 300
Cash generated from operation 5,250
Income taxes paid(W3) -1,100
Net cash from operating activities 4,150

Cash flows from investing activities

Acquisition of subsidiary net of cash caquired (1,300-100) -1,200 tanya
Purchase of PPE(W1) -2,440
Dividends received from associate(W1) 260
Net cash used in investing activities -3,380

Cash flow from financing activities

Proceeds from issuance of share capital (W2) 940
Dividends paid to owners of the parent (W2) -360
Dividends paid to NCI (W2) -50
Net cash from financing activities 530

Net increse in cash and cash equivalents 1,300

Cash and cash equivalents at the beginning of the year 1,500
Cash and cash equivalents at the year of the year 2,800

Workings

1. Assets
PPE $'000
b/d 41,700
SPLOCI 1,000
Depreciation -2,200
Acquisition of subsidiary 1,900
Non-cash additions (W5) 30
Cash paid/B 2,440
c/d 44,870
Goodwill $'000
b/d 1,400
Impairment/B -180
Acquisition of subsidiary 720
c/d 1,940

*Goodwill on acquisition of subsidiary:

Consideration transferred ((200*$8.50)+1,300) 3,000
NCI 320
(-) fair value of net assets at acquisition -2,600
720

Associate $'000
b/d 3,100
SPLOCI (800+180) 980
Cash paid/B -260
c/d 3,820

2. Equity
Share capital and share premium $'000
b/d (5,000+9,000) 14,000
Acquisition of subsidiary (200*$8.50) 1,700
Cash (paid)/B 940
c/d (5,300+11,340) 16,640

Retained earnings $'000

b/d 29,700
SPLOCI 3,440
Cash (paid)/B -360
c/d 32,780

NCI $'000 *
b/d 1,700
SPLOCI 190 tanya
Acquisition of subsidiary 320
Cash (paid)/B -50
c/d 2,160

3. Liabilities
Tax payable $'000
b/d (2,100+500) 2,600
SPLOCI (1.200+250) 1,450
Cash (paid)/B -1,100
c/d (2,350 + 600) 2,950
4. Working capital charges
Inventories Trade receivables Trade payables
$'000 $'000 $'000
b/d 8,100 7,600 9,400
Acquisition of subsidiary 700 300 400
Increase/(decrease)B 800 600 300
c/d 9,600 8,500 10,100

5. Foreign transaction
Transaction recorded on:
$'000 $'000
1) 30 Sep Debit PPE (1,080/4) 270
Credit Payables 270
2) 30 nov Debit Payables (1,080/4)
Credit Cash (1,080/4.5) 240
Credit P/L 30