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Cash Flow Statement
02-07-2010, 11:13 PM
Post: #1
Cash Flow Statement
Caterpillar is the largest industry who makes construction equipment. Company is interesting to build a new Crain which can work on 400 meter heights. Company look for debt financing from Crescent bank for this project. The bank is interesting to learn the financial position of the business. Thus for the loan and advance committee of the bank demanded a cash flow statement of the company. Caterpillar company has provided the cash flow statement but the bank loan and advances committee did not agreed with this statement, for that purpose bank retained some information from company during the year of 2009.the information’s are given as follows



Purchase real estate for Rs.550, 000 cash, which was borrowed from bank.
Sold investment securities for Rs.550, 000
Paid dividend of Rs.500, 000
Issued 1000 ordinary shares for Rs.100,0000
Paid Rs.450, 000 towards a bank loan


Required

Now you are the Director finance of the crescent bank, by relaying upon that information which has been provided by the company, you are required to calculate the value of net cash flow under the head of financing activities during the year 2009 in accordance with IAS-7
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02-07-2010, 11:47 PM
Post: #2
 
Is this question that easy???
Cashflow from financing activities
dividends paid (500,000)
issue of shares 1,000,000
loan repayment (450,000)
Net cash 50,000
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