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05 Cash Flow Memo

Fouche Limited's cash flow statement for the year ended 30 April 2014 shows cash generated from operations of 858,300, with significant cash outflows for investing activities totaling 730,400. Financing activities resulted in a net inflow of 231,000, leading to a net change in cash equivalents of (244,000). The cash equivalents at the beginning of the year were 105,000, resulting in an end balance of (139,000).

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3 views2 pages

05 Cash Flow Memo

Fouche Limited's cash flow statement for the year ended 30 April 2014 shows cash generated from operations of 858,300, with significant cash outflows for investing activities totaling 730,400. Financing activities resulted in a net inflow of 231,000, leading to a net change in cash equivalents of (244,000). The cash equivalents at the beginning of the year were 105,000, resulting in an end balance of (139,000).

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Kaitlyn Francis
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QUESTION 4:

4.1.1 FOUCHE LIMITED


CASH FLOW STATEMENT FOR THE YEAR ENDED 30 APRIL 2014

Cash effects of operating activities 255 400


Cash generated from operations 858 300
Interest paid (104 000) 
Dividends paid (224 000 + 128 000 ) (352 000) 
(401 000)  (224 000)  273 000  (Mark line)
(146 900) 
Income tax paid (151 200 ) 11 600  (7 300 )

Cash effects of investing activities (730 400) 


Purchase of fixed assets
[1 917 500 + 207 300 +145 000 – 1 514 400) (755 400) 
Proceeds / disposal / sale of fixed assets 145 000
Fixed deposit (120 000) 

Cash effects of financing activities 231 000


Proceeds of shares issued 576 000
Repurchase of shares (192 000 + 93 000) (285 000) 
Repayment of long-term loans (60 000) 
Net change in cash equivalents (244 000)
Cash equivalents – beginning of year 105 000
Cash equivalents – end of year (139 000) 

30

30
4.1. NOTE FOR CASH GENERATED FROM OPERATIONS
2
Net profit before taxation (388 800 + 151 200) 540 000

Depreciation 207 300

Interest expense 104 000

Operating profit before changes in working capital 851 300

Cash effects of changes in working capital 7 000

Decrease in inventory (650 000 – 575 000) 75 000

Increase in receivables (269 000 – 233 000) (36 000) 

Decrease in payables (404 000 – 372 000) (32 000)  12


(400 000 + 4000) – (370 000 + 2 000)
Cash generated from operations 858 300 12

1 600 000 Shares beginning 960 000


800 000 Shares issued at 72 cents 576 000
(300 000) Shares repurchased at ?
2 100 000 Shares end 1 344 000
Shares repurchased: 1 344 000 – 576 000 – 960 000 = 192 000

Retained income

Balance beginning 326 000


NP after tax 388 800
300 000 shares repurchased at ?
Dividends (401 000)
Paid (0,08 x 1 600 000) 128 000
Declared 273 000
Balance end 220 800
Shares repurchased: 220 800 + 401 000 – 388 800 – 326 000 = 93 000

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