Accounting Business Reporting for Decision Making

302 Accounting: Business Reporting for Decision Making

(continued)

CSR Ltd

Statement of cash flows for the year ended 31 March 2015

Consolidated

($ millions) Note 2015 2014

Net (decrease)/increase in cash held

Net cash at the beginning of the financial year

Effects of exchange rate changes

62.1

5.9

0.4

(6.7

11.9

0.7

)

Net cash at the end of the financial year 9 68.4 5.9

Reconciliation of net profit attributable to shareholders of CSR

Limited to net cash from operating activities

Net profit attributable to shareholders of CSR Limited

Net profit attributable to non-controlling interests

Depreciation and amortisation

Movement in product liability provision

Net change in other provisions

Finance cost net of product liability discount unwind

Profit on disposal of assets

Net change in trade receivables

Net change in current inventories

Net change in trade payables

Movement in current and deferred tax balances

Net change in other assets and liabilities

125.5

21.2

77.8

(18.4

5.4

7.6

(35.4

(27.2

(3.8

29.2

43.7

5.3

)

)

)

)

88.1

11.0

76.8

(54.7

(12.4

9.0

(19.6

(9.1

2.3

(1.0

24.6

(2.9

) ) ) ) ) )

Net cash from operating activities 230.9 112.1

Note: Sales in 2015 were $2023.4 million and in 2014 were $1746.6 million.

Source: CSR Ltd 2015, annual report, p. 48.

Required

a. What information does the statement of cash flows provide? 2 marks

b. Outline the two different methods of preparing the statement of cash flows. Examine

the CSR Ltd statement of cash flows and report on its method used. 2 marks

c. Describe the three sections of the statement of cash flows. 2 marks

d. Discuss the difference between the statement of cash flows and the statement of profit or loss. 2 marks

e. Assess how each section in the statement of cash flows relates to the balance sheet. 2 marks

f. Examine the CSR Ltd statement of cash flows and compare the cash from operating

activities with operating profit after tax. Are they similar? If not, suggest why. 2 marks

g. Compare the cash from operating activities for 2014 and 2015. Are they similar? If not,

ascertain why. 2 marks

h. What money did CSR Ltd spend on investing activities? How does this compare to the

previous year? 2 marks

i. What financing activities were undertaken by CSR Ltd? Compare the borrowings from

the previous year and suggest reasons for any major changes. Were there any payments

made to shareholders? 2 marks

j. Generate an opinion about its cash position. 2 marks

Self-evaluation activities

7.1 Listed below are transactions that occurred in the current financial year for Fionn Pty Ltd. Classify

each transaction into an operating, investing or financing activity, or a non-cash transaction. If a

cash transaction, indicate whether it is a cash inflow or a cash outflow.

a. Paid dividend of $1 million to shareholders.

b. Collected $356 000 from a major accounts receivable.