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..Something About Accounting and Finance

In: Business and Management

Submitted By doudou9009000
Words 11646
Pages 47
Statements of cash flows for the years ended 31 March 2012 £m Cash flows from operating activities Profit, after interest, before taxation Adjustments for: Depreciation Interest expense Increase in inventories Increase in trade receivables Increase in trade payables Cash generated from operations Interest paid Taxation paid Dividend paid Net cash from/(used in) operating activities Cash flows from investing activities Payments to acquire property, plant and equipment Net cash used in investing activities Cash flows from financing activities Issue of loan notes Net cash from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at start of year Cash/(overdraft) Cash and cash equivalents at end of year Cash/(overdraft) 225 26 18 269 (59) (17) 58 251 (18) (63) (40) 130 (77) (77) – – 53 (49) 4 2013 £m 15 33 32 80 (106) (33) 93 34 (32) (32) (40) (70) (110) (110) 100 100 (80) 4 (76)

Notes: 1 The market value of the shares of the business at the end of the reporting period was £2.50 for 2012 and £1.50 for 2013. 2 All sales and purchases are made on credit. 3 The cost of sales figure can be analysed as follows: 2012 £m 241 1,804 2,045 (300) 1,745 2013 £m 300 2,378 2,678 (406) 2,272

Opening inventories Purchases (Note 2) Closing inventories Cost of sales

4 At 31 March 2011, the trade receivables stood at £223 million and the trade payables at £183 million. 5 A dividend of £40 million has been paid to the shareholders in respect of each of the years. 6 The business employed 13,995 staff at 31 March 2012 and 18,623 at 31 March 2013. 7 The business expanded its capacity during 2013 by setting up a new warehouse and distribution centre. 8 At 1 April 2011, the total of equity stood at £438 million and the total of equity and non-current liabilities stood at £638 million.

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chApter 8 analysing and interpreting FinanCial statements…...

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