Decrease in trades and other payable + provisions (include NC) Cash flow statement reports amount as – 6129 This includes the $714 CARS ads that we made in calculating INAPT (which doesn’t appear in the actual reported INAPT) So this figure needs to exclude the $714 otherwise we will double counting it The amount of decrease should be -$5415 The 714 represents a loss that would reduce decrease In the payable that Is a negative cash flow and reason why we making adjustment If we don’t then will double count it Repayment of borrowings not same as in cash flow statement.
Stetson Is why is repayment of borrowings of -36326 reason Is, If we go further down to steel and tube actual cash flow statement – they calculated a net movement In cash and cash equivalents of 46326 so cash went up by that amount. But looking at next items the balances minus mat of -53828. What that means is firm had a bank overdraft of that amount . At end of year reduced to -7502 but still in credit balance. So bank overdraft is form of borrowings so firm, what is it done paid back some of those borrowings – paid back 46326 to reduce it to 7502.
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What we have done on worksheet we actually taken that payment of 46326 and Included It as part of repayment of borrowings In the financing section of this combined statements. So taken 10000 dollars already reported In cash flow statement which was a positive mat. Then firm paid back 46326 so net is 36326 Need to classify items now Income tax expense – have to split It up between mat related to operations and mat related to capital cash flow part of the interest expense. To do this: Income tax FCC amount = reported tax expense + the tax benefit on interest =11177 + (6472*0. =11177+1942 =13119 After tax interest CAPS amount = I ( 1-. 3) -6472 1 ??4530 Decrease in WAC Increase In Income tax paddle Inventories race 32788 -2996 (Decrease In WAC) Increase In (increase in WAC) Decrease in trades and other (decrease in WAC) Decrease in trades and 20th pay -5415 (Increase in WAC) 25407 That 25407 implies a decrease in working capital and therefore that needs to be added to nonfat to get your free cash flows. Decreases in WAC > increases in WAC CAPE -311(GAIN on sale of fixed assets) +1367 – 4158 = -3902 -3902 paid out from capital expenditures.