Question 3 Disposal of subsidiary in Group Statements of Cash Flows

Kathmandu Tourism Group disposed of its 100% owned subsidiary Everest Base Camp Suppliers during the financial year ended 30^th June 20X9.

Kathmandu Tourism Group received $26m cash proceeds from the business that acquired Everest Base Camp Suppliers.

Everest Base Camp Suppliers had a cash balance of $7m at the date of disposal.

Required:

Show how the disposal of Everest Base Camp Suppliers should be presented in the 'cash flows from investing activities'section of the consolidated statement of cash flows of Kathmandu Tourism Group.

Q4b On the basis of its cash flows, would yourecommend buying shares in this company? Explain why / why not.

Question4 Investigating a listed company's statement of cash flow

Go online and select an interesting public company that is listed on the ASX e.g. a bank, miner, insurer or infrastructure developer.

Then investigate its statement of cash flows in its latest annual report - beginning with the Executive Summary, then the relevant section in the Table of Contents.

Q4a. Identify thekey statements that it makes about its cash flows.