Illustration
You'll learn how to prepare a complete statement of cash flow from start to finish using a full worked example for Mighty Limited.
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In this lesson
- 0:00 Statement of cash flow illustration overview
- 1:21 Working out asset cost and acquisitions
- 3:50 Calculating depreciation expense
- 4:40 Analysing disposal proceeds and profit
- 5:34 Working out tax paid from liability
- 6:25 Calculating interest paid movements
- 7:25 Determining debt proceeds received
- 8:18 Building the complete cash flow statement
- 10:01 Investing and financing activities sections
- 11:02 Reconciling opening and closing cash
About this lesson
This illustration walks you through every step: extracting figures from the statement of profit and loss and statement of financial position, performing essential workings (non-current asset movements, depreciation, disposal gains, tax and interest payables, and debt changes), and then systematically building the cash flow statement by section. You'll see how to handle working capital movements, classify cash flows correctly across operating, investing, and financing activities, and verify your answer by reconciling opening and closing cash balances. This is detailed content worth revisiting—it brings together all the techniques needed for exam success in Financial Reporting or Financial Accounting papers.
Duration: 12m
Transcript
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