Answered step by step
Verified Expert Solution
Question
1 Approved Answer
a) AquaDude Plc is a company which designs and markets high quality outdoor activity clothing (eg for hiking, beach wear, and running). The company had
a) AquaDude Plc is a company which designs and markets high quality outdoor activity clothing (eg for hiking, beach wear, and running). The company had annual sales in the year ended 31st December 2016 of 810m. Its shares are listed on the London Stock Exchange. The following are extracts from the company's annual statement of cash flows for the year ended 31st December 2016: m Net cash inflow from operations 350 Taxation paid (65) Interest paid (10) Cash outflows on acquisitions of property, plant and equipment (150) Cash outflows from acquisitions of intangible assets (80) Payment of dividends (90) Repayment of borrowings (60) Proceeds of new borrowing Cash balance at 18 January 2016 60 105 a) Write a brief report explaining what the above cash flow data tells you about the activities of AquaDude Plc during the year ended 31st December 2016. (14marks) Vintage Cloud Plc reported the following items in its statement of financial position at 31st December 2016 and its income statement for the year to 31st December 2016: b) m 450 Operating Profit Trade receivables at 31st December 2016 950 800 Trade receivables at 1st January 2016 Trade payables at 31st December 2016 Trade payables at 1st January 2016 750 700 Inventory at 31st December 2016 1,000 Inventory at 1st January 2016 850 Required: Use the above data to adjust Vintage Cloud Plc's operating profit for the year ended 31st December 2016 to cash flow from operations. Explain each adjustment made. (6 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started