Question Tag: Statement of Cash Flows

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CR – Mar 2025 – L3 – Q1 – Consolidated Cash Flows

Prepare Pato Aluworks Group's consolidated cash flow statement for 2024, including reconciliation note, using indirect method.

Question

Pato Aluworks Group (Pato) is an aluminium processing and casting entity that supplies high quality aluminum coils to both local and foreign markets. Pato has 3 subsidiaries namely Asanka, Jaritan and Topoya and one associate Dosi all of which it acquired several years ago. The Group’s Consolidated Statement of Profit or Loss Account for the year ended 31 December 2024 and Consolidated Statement of Financial Position as that date are set out below:

Consolidated Statement of Profit or Loss for the year ended 31 December (extract)

	2024	2023
	GH¢	GH¢
Profit from operations	651,150	640,496
Impairment reversal/(loss)	2,500	(1,250)
Finance costs	(52,000)	(40,825)
Share of profits of associate	127,575	108,439
Profit before tax	729,225	706,860
Income tax expense	(145,800)	(123,930)
Profit for the year (continuing operations)	583,425	582,930
Profit for the year (discontinued operations)	102,375
Profit for the year	685,800	582,930
Attributable to:
Owners of Pato	571,725	485,966
Non-controlling interest	114,075	96,964
	685,800	582,930

Consolidated Statement of Financial Position as at 31 December

ASSETS	2024	2023
Non-current assets	GH¢	GH¢
Property, plant and equipment	2,283,350	2,212,875
Intangible assets	22,000	–
Investment in associate	418,275	404,550
	2,723,625	2,617,425
Current assets
Trade and other receivables	170,325	200,025
Cash and cash equivalents	46,125	32,625
	216,450	232,650
Total assets	2,940,075	2,850,075
EQUITY AND LIABILITIES
Equity
Ordinary share capital (GH¢0.50 shares)	495,000	315,000
Share deals account	112,500	45,000
Retained earnings	1,491,750	1,518,975
Attributable to the equity holders of Pato	2,099,250	1,878,975
Non-controlling interest	315,450	339,300
	2,414,700	2,218,275
Non-current liabilities
Lease Liabilities	239,100	300,000
Employee benefit obligations	42,150	37,500
Current liabilities
Trade and other payables	90,000	118,800
Due to related parties	1,125	–
Income tax payable	153,000	175,500
	244,125	294,300
Total equity and liabilities	2,940,075	2,850,075

Additional information:
i) Pato owns 60% in Jaritan. The goodwill attributable to Pato arising on acquisition was GH¢67,500. The carrying value of Jaritan’s identifiable net assets (excluding goodwill arising on acquisition) in the group consolidation financial statements is GH¢180,000 at 31 December 2024. The recoverable amount of Jaritan is expected to be GH¢230,000 and no impairment loss had been recorded up to 31 December 2023.
ii) Pato sold all of its 75% shareholding in Asanka for cash during the year end December 31, 2024. As at December 31, 2023, all of the goodwill acquired in the business combination with Asanka had been written off. The profit from discontinued operations in the consolidated income statement above relates wholly to the sale of the shares in Asanka and can be analysed as follows:

	GH¢
Profit before tax	93,150
Income tax expense	(14,400)
Profit on disposal	23,625
	102,375

The net assets of Asanka at the date of disposal were as follows:

	GH¢
Property, plant and equipment	421,875
Trade and other receivables	31,275
Cash and cash equivalents	3,375
Trade and other payables	(19,012)
	437,512

iii) On 31 March 2024 Pato issued 100,000 ordinary shares for cash. This was followed by a bonus issue on 30 September 2024, utilising the share deals account. The consolidated statement of changes in equity for the year shows that all group companies paid ordinary dividends during the year.
iv) Depreciation of GH¢395,100 was recognised during the year ended 31 December 2024. In addition to the property, plant and equipment disposed of through the sale of Asanka, plant with a carrying amount of GH¢126,000 was sold for cash of GH¢135,000.
v) Trade and other payables include GH¢11,250 (2023: GH¢6,750) of unpaid interest due on the bank loan.

Required:
Prepare a consolidated statement of cash flows for Pato for the year ended 31 December 2024, including a note reconciling profit before tax to cash generated from operations, using the indirect method. (A note showing the effects of the disposal of Asanka is not required).

Answer

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Tags: Consolidated Cash Flows, Discontinued Operations, Dividends, Group Transactions, IAS 7, IFRS 10, Impairment, Non-Controlling Interest, Share Issues, Statement of Cash Flows
Level: Level 3

Topic: Consolidated Financial Statements (IFRS 10)
Series: MAR 2025

FR – May 2017 – L2 – SA – Q1 – Statement of Cash Flows

Prepare a cash flow statement for Bello Professional Nigeria Limited using the indirect method, discuss the direct method, and explain classification options for interest and dividends in cash flow statements.

Question

The following information relates to financial statements included in the annual report of Bello Professional Nigeria Limited.

Required

a. Prepare a statement of cash flow for Bello Professional Nigeria Limited for the year ended March 31, 2015, in accordance with IAS 7 using the indirect method. (18 Marks)

b. One of the directors at the annual general meeting suggested that the direct method of preparing cash flows is more useful. Comment on this view, providing your opinion. (7 Marks)

c. IAS 7 allows different classifications in cash flow statements. Explain the classification options for the following items:

i. Interest paid
ii. Dividends received
(5 Marks)

Answer

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Tags: Cash Flow Classification, Cash Flow Presentation, Direct vs Indirect Method, Financial Reporting, IAS 7, Statement of Cash Flows
Level: Level 2

Topic: Statement of Cash Flows (IAS 7)
Series: MAY 2017

FR – May 2024 – L2 – SB – Q1 – Statement of Cash Flows

Prepare a statement of cash flows for Badary Plc using the direct method and discuss profitability, gearing, and investor's stake in Badary Plc.

Question

Additional Information:

(i) During the year ended March 31, 2021, plant and equipment with a carrying amount of N40,000,000 were sold for N55,000,000. The profit or loss on disposal was charged to distribution expenses.
(ii) Dividend of 2 kobo per share was paid in the year ended March 31, 2021, and there were also bonus issues.
(iii) Depreciation charged for the year was N10,000,000 on furniture and N30,000,000 on plant and equipment.
(iv) During the year, an investment that cost N12,500,000 some years ago was disposed of for N20,000,000. The profit or loss on disposal was charged to administrative expenses.
(v) Dividends received were from investments in shares and the immediate disposal of rights issues from the investment in a blue-chip company.

You are required to:
a. Prepare the statement of cash flows of Badary Plc for the year ended March 31, 2021, using the direct method in accordance with IAS 7. (20 Marks)
b. Discuss the profitability, gearing, and investor’s stake in Badary Plc and recommend strategies for improving or sustaining them. (10 Marks)

Answer

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Tags: Cash Flow, Financial Reporting, Gearing, IAS 7, Investor's Stake, Profitability analysis, Statement of Cash Flows
Level: Level 2

Topic: Statement of Cash Flows (IAS 7)
Series: MAY 2024

FR – May 2019 – L2 – Q2a and Q2b – Presentation of Financial Statements (IAS 1)

Prepare the statement of cash flows for Babafrayo Nig. Ltd. using the indirect method and calculate the net cash flow from operating activities using the direct method.

Question

Babafrayo Nig. Ltd. is a company located in Lagos and is engaged in the hotel and tourism business. The financial statements of the company are as follows:

Statement of Profit or Loss and Other Comprehensive Income for the Year Ended 31 December 2018:

Description	₦’000
Revenue	994,500
Cost of sales	(884,000)
Gross profit	110,500
Admin expenses	(21,250)
Distribution cost	(44,200)
Finance costs	(4,250)
Profit before taxation	40,800
Income tax expense	(5,100)
Profit for the year	35,700
Other comprehensive income
Gains on property revaluation	17,000
Total comprehensive income	52,700

Statement of Financial Position as at 31 December 2018:

Description	2018 N’000	2017 N’000
Non-current assets:
Property, plant & equipment	242,250	174,250
Total non-current assets	242,250	174,250
Current assets:
Inventories	49,300	51,000
Trade receivables	35,700	25,500
Cash and cash equivalent	2,550	4,250
Total current assets	87,550	80,750
Total assets	329,800	255,000

Additional information:

(i) Property, plant, and equipment with a carrying value of ₦23,800,000 was sold during the year ended 31 December 2018 for ₦24,650,000. The asset had originally cost ₦38,250,000.
(ii) Depreciation on property, plant, and equipment for the year 2018 amounted to ₦34,000,000.
(iii) Dividend paid during the year 2018 amounted to ₦4,250,000 and is reported in the statement of changes in equity for the year.

(a) Prepare the statement of cash flows for the year ended 31 December 2018 in accordance with IAS 7 using the indirect method.
(12 Marks)

(b) Prepare net cash flows from operating activities only using the direct method.
(6 Marks)

Answer

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Tags: Cash Flow from Operations, Direct Method, Indirect Method, Statement of Cash Flows
Level: Level 2

Topic: Presentation of Financial Statements (IAS 1)
Series: MAY 2019

FA – May 2018 – L1 – SA – Q15 – Financial Statements Preparation

Identifies the type of activity that is not classified as an operating activity in the cash flow statement.

Question

Which of the following is NOT an operating activity?
A. Cash receipt and cash payment of an insurance entity for premiums on claims, annuities, and other policy benefits
B. Cash advances and loans made to other parties
C. Cash payments or payments from contracts held for dealing or trading purposes
D. Cash receipts from the sale of goods and rendering of services
E. Cash receipts from royalties, fees, commissions, and other revenue

Answer

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Tags: Cash Flow, Operating Activities, Statement of Cash Flows
Level: Level 1

Topic: Financial Statements Preparation
Series: MAY 2018

FR – Nov 2018 – L2 – SA – Q1a – Statement of Cash Flows (IAS 7)

Prepare a statement of cash flows for Oshodi Nigeria Ltd using the indirect method and IAS 7.

Question

The financial statements of OSHODI Nigeria Limited for the year ended May 13, 2017, are as follows:

Statement of Profit or Loss for the year ended May 31, 2017:

Item	N’m
Revenue	3,820
Cost of sales	(2,620)
Gross profit	1,200
Operating expenses	(300)
Profit before interest and tax	900
Interest	(30)
Profit before tax	870
Taxation	(270)
Net profit	600

Statement of Financial Position as at May 31, 2017 (with comparative figures for 2016):

Assets	2017 N’m	2016 N’m
Non-Current Assets
Property, plant, and equipment	1,890	1,830
Intangible assets	650	300
Total non-current assets	2,540	2,130
Current Assets
Inventory	1,420	940
Accounts receivable	990	680
Cash	70	Nil
Total current assets	2,480	1,620
Total Assets	5,020	3,750

Equity and Liabilities:

Equity	2017 N’m	2016 N’m
Ordinary shares of N1 each	750	500
Share premium	300	100
Revaluation reserve	190	Nil
Retained earnings	1,610	1,400
Total equity	2,850	2,000

OSHODI NIGERIA LIMITED
Statement of Changes in Equity for the year ended May 31 2017

Notes to the financial statements:
(1) Cost of sales includes depreciation of property, plant and equipment of N320 million and a
loss on the sale of plant of N50 million. It also includes a credit for the amortisation of
government grants. Operating expenses include a charge of N20 million for the amortisation
of goodwill

(2)

(3)

(4)

The following additional information is relevant:
(i) Intangible assets:
The company successfully completed the development of a new product during the current
year, capitalising a further N500 million before amortisation charges for the period.

(ii) Property, plant and equipment/revaluation reserve:
The company revalued its buildings by N200 million on June 1 2016. The surplus was
credited to revaluation reserve.

New plant was acquired during the year at a cost of N250 million and a government grant
of N50 million was received for the plant.
On June 1, 2016, a bonus issue of 1 new share for every 10 held was made from the share
premium.
N10 million has been transferred from the revaluation reserve to realized profits as a year-end adjustment in respect of the additional depreciation created by the revaluation.
The remaining movement on property, plant and equipment was due to the disposal of
obsolete plant.

(iii) Share issue:
In addition to the bonus issue referred to above, Oshodi Nigeria Limited made a further issue
of ordinary shares for cash.

Required:
Prepare the statement of cash flows for Oshodi Nigeria Limited for the year ended May 31, 2017, using the indirect method according to IAS 7.

Answer

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Tags: Financing Activities, Indirect Method, Investing Activities, Operating Activities, Statement of Cash Flows
Level: Level 1

Topic: Statement of Cash Flows (IAS 7)
Series: NOV 2018

FA – May 2016 – L1 – SA – Q20 – Regulatory Environment of Accounting

Identifying which activity is not an investing activity under IAS 7.

Question

Which of the following will NOT be regarded as an investing activity in relation to IAS 7 statement of cash flows?
A. Dividend received
B. Cash paid to acquire property, plant and equipment
C. Cash paid to acquire equities in other entities
D. Cash payment to supplier of goods and services
E. Proceeds from sale of property, plant and equipment

Answer

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Tags: Cash Flow, IAS 7, Investing Activities, Statement of Cash Flows
Level: Level 1

Topic: Regulatory Environment of Accounting
Series: MAY 2016

FA – May 2015 – L1 – Q6 – Financial Statements Preparation

Prepare a statement of cash flows using the direct method for the year ended 31 December 2014 with given financial data.

Question

Financial data extracted from the books of Kandor Enterprises Limited for the year ended 31 December 2014 are shown below:

Details	N’000
Revenue	6,990
Decrease in receivables	177
Cost of sales	5,128
Increase in inventories	1,483
Increase in payables	613
Selling and distribution expenses	300
Administrative expenses	343
Loss on disposal of non-current assets	6
Depreciation charges for the year	62
Ordinary shares issued for cash	400
Purchase of property, plant, and equipment	113
Income tax paid	198
Proceeds from disposal of non-current assets	3
Repayment of loan notes	10
Dividend paid	86
Interest paid on loan notes	191
Cash and cash equivalent at the beginning of the year	(409)

Required:
Prepare the Statement of Cash Flows for the year ended 31 December 2014 using the direct method, showing:
a. Net cash flow from operating activities (5 Marks)
b. Net cash flow from investing activities (5 Marks)
c. Net cash flow from financing activities (5 Marks)
d. Cash and cash equivalents at the end of the year (5 Marks)

Show all workings.

Answer

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Tags: Financing Activities, Investing Activities, Operating Activities, Statement of Cash Flows
Level: Level 1

Topic: Financial Statements Preparation
Series: MAY 2015

FR – May 2017 – L2 – Q3 – Preparation of Financial Statements

Prepare a statement of cash flows for Haruna Ltd for the year ended 31 March 2017.

Question

The following information has been taken from the financial statements of Haruna Ltd, a listed company for the year ended 31 March 2017:

Statement of Profit or Loss and Other Comprehensive Income (extracts) for the year ended 31 March 2017:

Additional information:

i) During the year, Haruna Ltd issued both ordinary shares and redeemable preference shares for cash.

ii) Investments classified as current assets are held for the short term and are readily convertible into the stated amounts of cash on demand.

iii) During the year, Haruna Ltd sold plant and equipment with a carrying amount of GH¢840,500 for GH¢900,000. Total depreciation charges for the year amounted to GH¢1,100,000. Plant costing GH¢50,000 was purchased on credit, and the amount is included within trade and other payables.

iv) Trade and other payables include accrued interest of GH¢5,000 as at 31 March 2017 (2016: GH¢10,000).

v) Intangibles relate to development costs capitalised in accordance with IAS 38 Intangible Assets. Costs amounting to GH¢70,000 were capitalised during the year.

Required:
Prepare a Statement of Cash Flows for Haruna Ltd for the year to 31 March 2017 in accordance with IAS 7 Statement of Cash Flows.

Answer

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Tags: Cash Flows, Financing Activities, IAS 7, Investing Activities, Operating Activities, Statement of Cash Flows
Level: Level 2

Topic: Preparation of Financial Statements
Series: MAY 2017

CR – Nov 2021 – L3 – Q5 – Analysis and Interpretation of Financial Statements

Produce a report analyzing the cash flow performance of Saglema Plc relative to a competitor over two years and explain the uses and limitations of cash flow analysis.

Question

You are the Senior Financial Accountant at Saglema Plc (Saglema), a company that manufactures and sells painting materials in the local market and around the West African sub-region. At the first one-on-one meeting with the recently appointed chairperson of your company’s governing board, she asked you to produce a concise report on Saglema’s cash flow performance relative to that of Adidome Plc (Adidome), a close competitor, over the last two years.

The following are the cash flow statements for the last two years for Saglema and Adidome:

Cash Flow Statements for the Year Ended 31 August 2020 (together with comparatives):

Required:

i) Produce a report showing the comparative analysis of the cash flow performance and situation of Saglema over the last two years, relative to that of Adidome. (15 marks)
ii) Explain TWO (2) uses and THREE (3) limitations of such analysis. (5 marks)

Answer

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Tags: Cash Flow Performance, Cash Flow Statements, Comparative Analysis, Financial Statements, Statement of Cash Flows, Uses and Limitations
Level: Level 3

Topic: Analysis and Interpretation of Financial Statements
Series: NOV 2021

CR – Mar 2025 – L3 – Q1 – Consolidated Cash Flows

Prepare Pato Aluworks Group's consolidated cash flow statement for 2024, including reconciliation note, using indirect method.

Question

Consolidated Statement of Profit or Loss for the year ended 31 December (extract)

	2024	2023
	GH¢	GH¢
Profit from operations	651,150	640,496
Impairment reversal/(loss)	2,500	(1,250)
Finance costs	(52,000)	(40,825)
Share of profits of associate	127,575	108,439
Profit before tax	729,225	706,860
Income tax expense	(145,800)	(123,930)
Profit for the year (continuing operations)	583,425	582,930
Profit for the year (discontinued operations)	102,375
Profit for the year	685,800	582,930
Attributable to:
Owners of Pato	571,725	485,966
Non-controlling interest	114,075	96,964
	685,800	582,930

Consolidated Statement of Financial Position as at 31 December

ASSETS	2024	2023
Non-current assets	GH¢	GH¢
Property, plant and equipment	2,283,350	2,212,875
Intangible assets	22,000	–
Investment in associate	418,275	404,550
	2,723,625	2,617,425
Current assets
Trade and other receivables	170,325	200,025
Cash and cash equivalents	46,125	32,625
	216,450	232,650
Total assets	2,940,075	2,850,075
EQUITY AND LIABILITIES
Equity
Ordinary share capital (GH¢0.50 shares)	495,000	315,000
Share deals account	112,500	45,000
Retained earnings	1,491,750	1,518,975
Attributable to the equity holders of Pato	2,099,250	1,878,975
Non-controlling interest	315,450	339,300
	2,414,700	2,218,275
Non-current liabilities
Lease Liabilities	239,100	300,000
Employee benefit obligations	42,150	37,500
Current liabilities
Trade and other payables	90,000	118,800
Due to related parties	1,125	–
Income tax payable	153,000	175,500
	244,125	294,300
Total equity and liabilities	2,940,075	2,850,075

	GH¢
Profit before tax	93,150
Income tax expense	(14,400)
Profit on disposal	23,625
	102,375

The net assets of Asanka at the date of disposal were as follows:

	GH¢
Property, plant and equipment	421,875
Trade and other receivables	31,275
Cash and cash equivalents	3,375
Trade and other payables	(19,012)
	437,512

Answer

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Tags: Consolidated Cash Flows, Discontinued Operations, Dividends, Group Transactions, IAS 7, IFRS 10, Impairment, Non-Controlling Interest, Share Issues, Statement of Cash Flows
Level: Level 3

Topic: Consolidated Financial Statements (IFRS 10)
Series: MAR 2025

FR – May 2017 – L2 – SA – Q1 – Statement of Cash Flows

Prepare a cash flow statement for Bello Professional Nigeria Limited using the indirect method, discuss the direct method, and explain classification options for interest and dividends in cash flow statements.

Question

The following information relates to financial statements included in the annual report of Bello Professional Nigeria Limited.

Required

a. Prepare a statement of cash flow for Bello Professional Nigeria Limited for the year ended March 31, 2015, in accordance with IAS 7 using the indirect method. (18 Marks)

b. One of the directors at the annual general meeting suggested that the direct method of preparing cash flows is more useful. Comment on this view, providing your opinion. (7 Marks)

c. IAS 7 allows different classifications in cash flow statements. Explain the classification options for the following items:

i. Interest paid
ii. Dividends received
(5 Marks)

Answer

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Tags: Cash Flow Classification, Cash Flow Presentation, Direct vs Indirect Method, Financial Reporting, IAS 7, Statement of Cash Flows
Level: Level 2

Topic: Statement of Cash Flows (IAS 7)
Series: MAY 2017

FR – May 2024 – L2 – SB – Q1 – Statement of Cash Flows

Prepare a statement of cash flows for Badary Plc using the direct method and discuss profitability, gearing, and investor's stake in Badary Plc.

Question

Additional Information:

Answer

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Tags: Cash Flow, Financial Reporting, Gearing, IAS 7, Investor's Stake, Profitability analysis, Statement of Cash Flows
Level: Level 2

Topic: Statement of Cash Flows (IAS 7)
Series: MAY 2024

FR – May 2019 – L2 – Q2a and Q2b – Presentation of Financial Statements (IAS 1)

Prepare the statement of cash flows for Babafrayo Nig. Ltd. using the indirect method and calculate the net cash flow from operating activities using the direct method.

Question

Babafrayo Nig. Ltd. is a company located in Lagos and is engaged in the hotel and tourism business. The financial statements of the company are as follows:

Statement of Profit or Loss and Other Comprehensive Income for the Year Ended 31 December 2018:

Description	₦’000
Revenue	994,500
Cost of sales	(884,000)
Gross profit	110,500
Admin expenses	(21,250)
Distribution cost	(44,200)
Finance costs	(4,250)
Profit before taxation	40,800
Income tax expense	(5,100)
Profit for the year	35,700
Other comprehensive income
Gains on property revaluation	17,000
Total comprehensive income	52,700

Statement of Financial Position as at 31 December 2018:

Description	2018 N’000	2017 N’000
Non-current assets:
Property, plant & equipment	242,250	174,250
Total non-current assets	242,250	174,250
Current assets:
Inventories	49,300	51,000
Trade receivables	35,700	25,500
Cash and cash equivalent	2,550	4,250
Total current assets	87,550	80,750
Total assets	329,800	255,000

Additional information:

(a) Prepare the statement of cash flows for the year ended 31 December 2018 in accordance with IAS 7 using the indirect method.
(12 Marks)

(b) Prepare net cash flows from operating activities only using the direct method.
(6 Marks)

Answer

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Tags: Cash Flow from Operations, Direct Method, Indirect Method, Statement of Cash Flows
Level: Level 2

Topic: Presentation of Financial Statements (IAS 1)
Series: MAY 2019

FA – May 2018 – L1 – SA – Q15 – Financial Statements Preparation

Identifies the type of activity that is not classified as an operating activity in the cash flow statement.

Question

Answer

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Tags: Cash Flow, Operating Activities, Statement of Cash Flows
Level: Level 1

Topic: Financial Statements Preparation
Series: MAY 2018

FR – Nov 2018 – L2 – SA – Q1a – Statement of Cash Flows (IAS 7)

Prepare a statement of cash flows for Oshodi Nigeria Ltd using the indirect method and IAS 7.

Question

The financial statements of OSHODI Nigeria Limited for the year ended May 13, 2017, are as follows:

Statement of Profit or Loss for the year ended May 31, 2017:

Item	N’m
Revenue	3,820
Cost of sales	(2,620)
Gross profit	1,200
Operating expenses	(300)
Profit before interest and tax	900
Interest	(30)
Profit before tax	870
Taxation	(270)
Net profit	600

Statement of Financial Position as at May 31, 2017 (with comparative figures for 2016):

Assets	2017 N’m	2016 N’m
Non-Current Assets
Property, plant, and equipment	1,890	1,830
Intangible assets	650	300
Total non-current assets	2,540	2,130
Current Assets
Inventory	1,420	940
Accounts receivable	990	680
Cash	70	Nil
Total current assets	2,480	1,620
Total Assets	5,020	3,750

Equity and Liabilities:

Equity	2017 N’m	2016 N’m
Ordinary shares of N1 each	750	500
Share premium	300	100
Revaluation reserve	190	Nil
Retained earnings	1,610	1,400
Total equity	2,850	2,000

OSHODI NIGERIA LIMITED
Statement of Changes in Equity for the year ended May 31 2017

(2)

(3)

(4)

(ii) Property, plant and equipment/revaluation reserve:
The company revalued its buildings by N200 million on June 1 2016. The surplus was
credited to revaluation reserve.

New plant was acquired during the year at a cost of N250 million and a government grant
of N50 million was received for the plant.
On June 1, 2016, a bonus issue of 1 new share for every 10 held was made from the share
premium.
N10 million has been transferred from the revaluation reserve to realized profits as a year-end adjustment in respect of the additional depreciation created by the revaluation.
The remaining movement on property, plant and equipment was due to the disposal of
obsolete plant.

(iii) Share issue:
In addition to the bonus issue referred to above, Oshodi Nigeria Limited made a further issue
of ordinary shares for cash.

Required:
Prepare the statement of cash flows for Oshodi Nigeria Limited for the year ended May 31, 2017, using the indirect method according to IAS 7.

Answer

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Tags: Financing Activities, Indirect Method, Investing Activities, Operating Activities, Statement of Cash Flows
Level: Level 1

Topic: Statement of Cash Flows (IAS 7)
Series: NOV 2018

FA – May 2016 – L1 – SA – Q20 – Regulatory Environment of Accounting

Identifying which activity is not an investing activity under IAS 7.

Question

Answer

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Tags: Cash Flow, IAS 7, Investing Activities, Statement of Cash Flows
Level: Level 1

Topic: Regulatory Environment of Accounting
Series: MAY 2016

FA – May 2015 – L1 – Q6 – Financial Statements Preparation

Prepare a statement of cash flows using the direct method for the year ended 31 December 2014 with given financial data.

Question

Financial data extracted from the books of Kandor Enterprises Limited for the year ended 31 December 2014 are shown below:

Details	N’000
Revenue	6,990
Decrease in receivables	177
Cost of sales	5,128
Increase in inventories	1,483
Increase in payables	613
Selling and distribution expenses	300
Administrative expenses	343
Loss on disposal of non-current assets	6
Depreciation charges for the year	62
Ordinary shares issued for cash	400
Purchase of property, plant, and equipment	113
Income tax paid	198
Proceeds from disposal of non-current assets	3
Repayment of loan notes	10
Dividend paid	86
Interest paid on loan notes	191
Cash and cash equivalent at the beginning of the year	(409)

Show all workings.

Answer

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Tags: Financing Activities, Investing Activities, Operating Activities, Statement of Cash Flows
Level: Level 1

Topic: Financial Statements Preparation
Series: MAY 2015

FR – May 2017 – L2 – Q3 – Preparation of Financial Statements

Prepare a statement of cash flows for Haruna Ltd for the year ended 31 March 2017.

Question

The following information has been taken from the financial statements of Haruna Ltd, a listed company for the year ended 31 March 2017:

Statement of Profit or Loss and Other Comprehensive Income (extracts) for the year ended 31 March 2017:

Additional information:

i) During the year, Haruna Ltd issued both ordinary shares and redeemable preference shares for cash.

ii) Investments classified as current assets are held for the short term and are readily convertible into the stated amounts of cash on demand.

iv) Trade and other payables include accrued interest of GH¢5,000 as at 31 March 2017 (2016: GH¢10,000).

v) Intangibles relate to development costs capitalised in accordance with IAS 38 Intangible Assets. Costs amounting to GH¢70,000 were capitalised during the year.

Required:
Prepare a Statement of Cash Flows for Haruna Ltd for the year to 31 March 2017 in accordance with IAS 7 Statement of Cash Flows.

Answer

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Tags: Cash Flows, Financing Activities, IAS 7, Investing Activities, Operating Activities, Statement of Cash Flows
Level: Level 2

Topic: Preparation of Financial Statements
Series: MAY 2017

CR – Nov 2021 – L3 – Q5 – Analysis and Interpretation of Financial Statements

Produce a report analyzing the cash flow performance of Saglema Plc relative to a competitor over two years and explain the uses and limitations of cash flow analysis.

Question

The following are the cash flow statements for the last two years for Saglema and Adidome:

Cash Flow Statements for the Year Ended 31 August 2020 (together with comparatives):

Required:

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Tags: Cash Flow Performance, Cash Flow Statements, Comparative Analysis, Financial Statements, Statement of Cash Flows, Uses and Limitations
Level: Level 3

Topic: Analysis and Interpretation of Financial Statements
Series: NOV 2021

Question Tag: Statement of Cash Flows

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Prepare a cash flow statement for Bello Professional Nigeria Limited using the indirect method, discuss the direct method, and explain classification options for interest and dividends in cash flow statements.

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Prepare a statement of cash flows for Badary Plc using the direct method and discuss profitability, gearing, and investor's stake in Badary Plc.

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Prepare the statement of cash flows for Babafrayo Nig. Ltd. using the indirect method and calculate the net cash flow from operating activities using the direct method.

Statement of Profit or Loss and Other Comprehensive Income for the Year Ended 31 December 2018:

Statement of Financial Position as at 31 December 2018:

Additional information:

You're reporting an error for "FR – May 2019 – L2 – Q2a and Q2b – Presentation of Financial Statements (IAS 1)"

FA – May 2018 – L1 – SA – Q15 – Financial Statements Preparation

Identifies the type of activity that is not classified as an operating activity in the cash flow statement.

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Prepare a statement of cash flows for Oshodi Nigeria Ltd using the indirect method and IAS 7.

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FA – May 2016 – L1 – SA – Q20 – Regulatory Environment of Accounting

Identifying which activity is not an investing activity under IAS 7.

You're reporting an error for "FA – May 2016 – L1 – SA – Q20 – Regulatory Environment of Accounting"

FA – May 2015 – L1 – Q6 – Financial Statements Preparation

Prepare a statement of cash flows using the direct method for the year ended 31 December 2014 with given financial data.

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FR – May 2017 – L2 – Q3 – Preparation of Financial Statements

Prepare a statement of cash flows for Haruna Ltd for the year ended 31 March 2017.

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CR – Nov 2021 – L3 – Q5 – Analysis and Interpretation of Financial Statements

Produce a report analyzing the cash flow performance of Saglema Plc relative to a competitor over two years and explain the uses and limitations of cash flow analysis.

You're reporting an error for "CR – Nov 2021 – L3 – Q5 – Analysis and Interpretation of Financial Statements"

CR – Mar 2025 – L3 – Q1 – Consolidated Cash Flows

Prepare Pato Aluworks Group's consolidated cash flow statement for 2024, including reconciliation note, using indirect method.

You're reporting an error for "CR – Mar 2025 – L3 – Q1 – Consolidated Cash Flows"

FR – May 2017 – L2 – SA – Q1 – Statement of Cash Flows

Prepare a cash flow statement for Bello Professional Nigeria Limited using the indirect method, discuss the direct method, and explain classification options for interest and dividends in cash flow statements.

You're reporting an error for "FR – May 2017 – L2 – SA – Q1 – Statement of Cash Flows"

FR – May 2024 – L2 – SB – Q1 – Statement of Cash Flows

Prepare a statement of cash flows for Badary Plc using the direct method and discuss profitability, gearing, and investor's stake in Badary Plc.

You're reporting an error for "FR – May 2024 – L2 – SB – Q1 – Statement of Cash Flows"

FR – May 2019 – L2 – Q2a and Q2b – Presentation of Financial Statements (IAS 1)

Prepare the statement of cash flows for Babafrayo Nig. Ltd. using the indirect method and calculate the net cash flow from operating activities using the direct method.

Statement of Profit or Loss and Other Comprehensive Income for the Year Ended 31 December 2018:

Statement of Financial Position as at 31 December 2018:

Additional information:

You're reporting an error for "FR – May 2019 – L2 – Q2a and Q2b – Presentation of Financial Statements (IAS 1)"

FA – May 2018 – L1 – SA – Q15 – Financial Statements Preparation

Identifies the type of activity that is not classified as an operating activity in the cash flow statement.

You're reporting an error for "FA – May 2018 – L1 – SA – Q15 – Financial Statements Preparation"

FR – Nov 2018 – L2 – SA – Q1a – Statement of Cash Flows (IAS 7)

Prepare a statement of cash flows for Oshodi Nigeria Ltd using the indirect method and IAS 7.

You're reporting an error for "FR – Nov 2018 – L2 – SA – Q1a – Statement of Cash Flows (IAS 7)"

FA – May 2016 – L1 – SA – Q20 – Regulatory Environment of Accounting

Identifying which activity is not an investing activity under IAS 7.

You're reporting an error for "FA – May 2016 – L1 – SA – Q20 – Regulatory Environment of Accounting"

FA – May 2015 – L1 – Q6 – Financial Statements Preparation

Prepare a statement of cash flows using the direct method for the year ended 31 December 2014 with given financial data.

You're reporting an error for "FA – May 2015 – L1 – Q6 – Financial Statements Preparation"

FR – May 2017 – L2 – Q3 – Preparation of Financial Statements

Prepare a statement of cash flows for Haruna Ltd for the year ended 31 March 2017.

You're reporting an error for "FR – May 2017 – L2 – Q3 – Preparation of Financial Statements"

CR – Nov 2021 – L3 – Q5 – Analysis and Interpretation of Financial Statements

Produce a report analyzing the cash flow performance of Saglema Plc relative to a competitor over two years and explain the uses and limitations of cash flow analysis.

You're reporting an error for "CR – Nov 2021 – L3 – Q5 – Analysis and Interpretation of Financial Statements"

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