In the income statement all income and expenses apart from depreciation and changes in provisions are cash oriented.
Prepare the cash flow statement for year X1.
b) Solution
Using the indirect method for the calculation of the cash flow from operating activities, in a first step the net result must be adjusted for any non-cash items in the income statement. In a second step, additional cash flows must be calculated by comparing balance sheet items.
Tab. 5.58: Exercise 35 solution.
| Item | Value in € | Explanation |
| Net result | 90,000 | |
| + Depreciation | 50,000 | |
| + Increase in provisions | 20,000 | Calculate increase from current and prior balance sheet |
| − Increase in inventories | −10,000 | Calculate increase from current and prior balance sheet |
| + Decrease in trade receivables | +20,000 | Calculate decrease from current and prior balance sheet |
| − Decrease in trade payables | −50,000 | Calculate decrease from current and prior balance sheet |
| = Cash flow from operating activities | 120,000 | |
| − Expenditures for non-current assets | −130,000 | See text; basis: cash flows |
| + Proceeds from disposal of non-current assets | +40,000 | See text; basis: cash flows |
| = Cash flow from investing activities | −90,000 | |
| + Proceeds from new loans | 70,000 | See text; basis: cash flows |
| − Repayment of loans | −20,000 | See text; basis: cash flows |
| − Payment of dividend | −70,000 | See text; basis: cash flows |
| = Cash flow from financing activities | −20,000 | |
| Total change of cash | +10,000 | Sum of partial cash flows |
| Cash at beginning | 80,000 | See balance sheet, prior year |
| Cash at end | 90,000 | See balance sheet, current year |
c) References
DRS 21
Coenenberg et al., 2016 (1), p. 818
..................Content has been hidden....................
You can't read the all page of ebook, please click here login for view all page.