7 Sources and Uses For the last year, you have gathered the following information about Rock Spring...

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7 Sources and Uses For the last year, you have gathered the following information about Rock Spring plc:

(a) The company undertook a £200 million share buyback programme.

(b) £300 million was invested in property, plant and equipment.

(c) Deferred revenue increased by £400 million.

(d) Corporation tax payments were £500 million.

(e) Staff redundancy payments of £50 million were made.

Label each as a source or use of cash and describe its effect on the firm’s cash balance.

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Corporate Finance

ISBN: 9781526848093

4th Edition

Authors: David Hillier

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