Topwood Ltd is a 40-year-old company producing furniture. 22 years ago, it acquired a 100% interest in Fleetwood Ltd. In 2011, it acquired a 40% interest in Landscapes Ltd and on 1 April 2013, it acquired a 75% interest in Garden Furniture Ltd. The draft consolidated accounts for the Topwood Group are as follows:

*Inclusive of Rs2,550,000 acquired under finance leases.

3. An item of machinery was sold during the year ended 31 March 2014 for Rs1,500,000.

Required:

(1) Prepare the consolidated statement of cash flows for the year ended 31 March 2014. 

(2) Analyse the consolidated statement of cash flows in (1), highlighting the key features of each category of cash flows.
 
 
 

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Income statement for the year ended 31 March 2014 Sales Cost of sales Gross profit Other income (income from long term investments) Selling and distribution expenses Administration expenses Finance cost Share of profits from associates net of tax Profit before tax Income tax expense Profit for year Attributable to Minority interest Attributable to owners of the parent Rs'000 10,000 (3,000) 7,000 600 (1,000) (1,545) (450) 1,050 5,655 (1,620) 4,035 300 3,735 Income statement for the year ended 31 March 2014 Sales Cost of sales Gross profit Other income (income from long term investments) Selling and distribution expenses Administration expenses Finance cost Share of profits from associates net of tax Profit before tax Income tax expense Profit for year Attributable to Minority interest Attributable to owners of the parent Rs'000 10,000 (3,000) 7,000 600 (1,000) (1,545) (450) 1,050 5,655 (1,620) 4,035 300 3,735

Answer rating: 100% (QA)

Cash flow under Indirect tax method Profit from Operating activities Depreciation Incr... View the full answer