Master Cash Flow Statements 2: Solved Exam Question

Описание: Welcome back to our accounting series! In this session, we continue our deep dive into cash flow statements. Following our previous overview of the components and formats, this video focuses on a practical, step-by-step solution to a real-world accounting problem.
Using the balance sheet data from "Agama Limited" for the years 2007 and 2008, we walk you through the entire process of preparing a Cash Flow Statement for the year ended December 31, 2008.
What you will learn in this video:
Operating Activities: How to start with net profit before tax and make necessary adjustments.
Non-Cash Adjustments: A detailed walkthrough on calculating depreciation for plants, machinery, and motor vehicles when accumulated figures aren't provided.
Investment Analysis: How to handle the sale of investments and calculate profit on disposal.
Working Capital Changes: Analyzing increments and decrements in current assets like stock and debtors, and current liabilities like creditors.
Whether you are a student preparing for exams or a professional looking to refresh your accounting skills, this practical example will help you master the movement of cash within an organization.

Key Data Points Covered:
Net Profit: $126,000
Depreciation Charges: Step-by-step calculation for fixed assets
Working Capital: Adjusting for $7,000 stock increase and $24,000 debtor reduction

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