QuestionStatement of Cash flows AnalysisAnalyze the statement of cash flows of the companies and find the answers of the followings1. Are cash flows from operations positive? What is the trend for three years?2. Is operating cash flows smaller or larger than net income? Al Kout Industrial Projects Company K.P.S.C. and its SubsidiariesCONSOLIDATED STATEMENT OF CASH FLOWSFor the year ended 31 December 20192019KD2018NotesKDOPERATING ACTIVITIESProfit before tax and directors' remuneration5,025,9516,679,525Adjustments to reconcile profit before tax to net cash flows:Depreciation of property, plant and equipmentDepreciation on right-of-use assetsAmortisation of an intangible assetLoss on sale of property, plant and equipmentImpairment of an intangible assetAllowance for expected credit losses on trade receivablesShare of results of an associateImpairment of investment in an associateChanges in fair value of financial assets at fair value through profit or lossDividend income83,247,976254,72070,8003,175,71135,4001,745131010247,80038,110(105,724)892,555109,016(228,762)(220,133)(53,600)308,21073,27317,917529,686(53,250)299,225191,202Provision for employees' end of service benefitsFinance costs20Interest expense on lease liabilities9,797,85510,739,498Working capital adjustments:InventoriesTrade receivables and contract assets(103,545)297,751616,828241,804(391,257)(68,429)(1,237,125)1,223,639Prepayments and other receivablesAccounts payable and accrualsCash flows from operationsTaxes paidEmployees end of service benefits paid10,850,693(165,057)(317,673)10,266,326(268,633)(156,241)20Net cash flows from operating activities10,367,9639,841,452INVESTING ACTIVITIESPurchase of property, plant and equipmentPurchase of intangible assetProceeds from disposal of property, plant and equipmentDividend income received(5,918,580)(2,373,119)(354,000)26,92053,250(5,449,365)853,600Acquisition of a subsidiary, net of cash acquired11Net cash flows used in investing activities(5,864,980)(8,096,314)FINANCING ACTIVITIESProceeds from borrowingsRepayment of borrowingsFinance costs paidPayment of principal portion of lease liabilitiesDividends paid to equity holders of the Parent Company500,0006,000,000(5,502,837)(191,202)(73,273)(262,998)(5,045,040)(5,045,040)Net cash used in financing activities(4,881,311)(4,739,079)NET DECREASE IN CASH AND CASH EQUIVALENTSCash and cash equivalents at 1 JanuaryNet foreign exchange differences(378,328)(380,886)(2,310)(2,993,941)2,608,6764,379CASH AND CASH EQUIVALENTS AT 31 DECEMBER15(761,524)(380,886)Non-cash items excluded from the statement of cash flows:Transitional adjustment to lease liabilities on adoption of IFRS 16Transitional adjustment to property and equipment on adoption of IFRS 16812,335(812,335)Transitional adjustment to retained earnings on adoption of IFRS 9Transitional adjustment to accounts receivable and other assets on adoption of2,825,199IFRS 9(2,825,199) QURAINQurain Petrochemical Industries Company K.S.C.P. and SubsidiariesCONSOLIDATED STATEMENT OF CASH FLOWSFor the year ended 31 March 202020202019NotesKDKDOPERATING ACTIVITIESProfit before taxation and Board of Directors' remuneration47,574,53161,073,427Adjustments to reconcile profit before taxation and Board ofDirectors' remuneration to net cash flows:Net unrealized / realised loss on financial assets at fair value through profit or lossShare of results of associates and joint venture(Gain) loss on sale of property, plant and equipment357,897(8,794,765)11.650(16,029,102)2,03538,9319.Provision for slow moving and obsolete InventoryImpairment of property, plant and equipment69,752154,116177,17111297.672Write off of property, plant and equipmentWhiteUnwinding expense on contingent consideration payable132.5979,925103,7241,487,57111,750,9211,957,7344,844,1173,499,24887,4572.362,119UnwindingCharge for expected credit losses on trade receivables9,17545.354124,0558,547,726expense on non-controlling interest put option6.Depreciation onDepreciation on right to use assetsAmortisationfixed assets11106,049,4412,512,97575,8072,122,531Finance costsShare based payment expenseProvision for employees' end of service benefits2365,641,51865,014,274Working capital adjustments:Trade and other receivables(26,647,562)(7,964,336)748,3535,178,0601,677,2358,499,830InventoriesRelated party balancesTrade and other payables6,225,078Cash from operationsTaxation paidBoard of Directors' remuneration paidEmployees' end of service benefits paidDividends received from associates37,254,69881,117,752(1,251,908)(150,000)(2,539,760)(150,000)(1,399,698)15,658,291(1,659,997)533,010Net cash flows from operating activities34,725,80392,686,585INVESTING ACTIVITIESPurchase of financial assets at fair value through profit or lossProceeds from sale of financial assets at fair value through profit or lossPurchase of financial assets at fair value through other comprehensive incomeProceeds from sale of financial assets at fair value through other comprehensive incomePurchaseAcquisition of subsidiary, net of cash acquiredInvestment in associate/ Joint venture(171,190)6,535,443(1,185,511)(3,025.664)3,012,593(455,785)1,800,000(950,415)(5,949,046)260,852(159,403)(39,765,300)(318,507)(13,497,574)557,523(3,212,000)e of additional interest in subsidiaries259.Purchase of property, plant and equipmentProceeds from sale of property, plant and equipmentNet movement in time deposits11(16,220,314)96,1635(7,400,000)Net cash flows used in investing activities(50,955,667)(29,092,468)FINANCING ACTIVITIESProceeds from borrowingsRepayment of borrowingsDividendsPurchase of treasury sharesProceeds from issuance of treasury shares against ESOPPayment of finance costsDividend paid to non-controlling interest of subsidiariesPayment of lease liabilities50,135,000(30,447,592)(15,664,189)20,292,290(31,173,249)(13,452,479)(1,179,140)397.298(2,512,975)(10,111,673)paid14(5,912,240)239,308(3,144,533)(11,047,107)(2,502,142)Net cash flows used in financing activities(18,343,495)(37,739,928)1.014.097(33,559,262)Effect of foreign currency translation(2,048.085)Net (decrease) increase in bank balances and cash23,806,104Bank balances and cash at 1 April102,611,45578,805,351Bank balances and cash at 31 March569,052,193102,611,455

Cash flow statement is a statement which shows all cash inflows and cash outflows of the business…

Answered: 1. Are cash flows from operations…

1. Are cash flows from operations positive? What is the trend for three years? 2. Is operating cash flows smaller or larger than net income?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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