Maxwell plc – Statements of Cashflows year ended 31 December 2020
Q) A cash flow statement reports cash flow measures for three primary business activities. Explain the importance of each of the three cash flow activities for a business. In addition, based on Statements of Cash Flows above, comment on the cash flow position of Maxwell plc.
2020 000
2019 000
Note
Operating activities Cash generated from operations (see below) Income tax paid Net cash inflow from operating activities
Investing activities Acquisition of property, plant and equipment Acquisition of intangible assets Proceeds from sale of property, plant and equipment Interest received Net cash outflow from investing activities
Financing activities Sale of own shares Purchase of own shares Dividends paid
152,222 134,470 (16,050) (17,602) 136,172 116,868
(61,437) (68,646) (5,188) (3,918) 1,726 2,171 6 182 249 (64,717) (70,144)
5,270 5,358 (9,945) 11,352 22 (33,086) (32,187) (37,761) (38,181) 33,694 8,543 16 54,503 45,960 16 88,197 54,503
Net cash outflow from financing activities
Net increase in cash and cash equivalents Cash and cash equivalents at the start of the year
Cash and cash equivalents at the end of the year
Cash flow statement - cash generated from operations
2018 000
2017 000
56,906 3,435 50,044 (415) 2,719 (472) 1,835 368 15,039 (2,754) (2,652) 4,497 5,920
Note
Profit for the financial year Amortisation Depreciation Impairment/(reversal of impairment) Loss on sale of property, plant and equipment Release of government grants Share-based payment expenses Finance expense Income tax expense Increase in inventories Decrease/(increase) in receivables Increase in payables (Decrease)/increase in provisions Increase in pension liability Cash from operating activities
65,739 10 3,039 11 52,867 11 367 1,602 (472) 20 2,018 6 12 8 16,879 (2,104) 1,784 12,849 (4,040) 20 1,682 152,222 134,470