Working 3 – Non-current assets
The purchase of property, plant and equipment should be $265 million and the disposal proceeds should be $80 million. This will necessitate an adjustment to the figure for net profit before tax of $45 million for the loss on the sale of property, plant and equipment
Working 4 – Acquisitions of subsidiary
$m
Purchase of subsidiary (160)
Cash acquired with subsidiary 30
–––––
(130)
Working 5 – Cash flows from financing activities
$m
Issue of ordinary shares (130 – sub shares 120) 10
Increase in debt (35 – sub loan notes 20) 15
Repayment of bond – issue price (29)
Working 6
$m
Dividends paid 20
less minority movement incorrectly shown (9)
plus NCI dividend (working 1) 16
–––
27
