Report on cash flow statements of Tesco PLC
The cash flow statement of any company in this case Tesco PLC, has the purpose of showing money received and expenses that were incurred by the company in the accounting year or period of 2009.
This statement emphasizes the net cash inflow or outflow and analyse any possible change in financing throughout the accounting period or year presented. The cash flow statement is classified into three headings that are as follows:
1) Operating activities.
2) Investment activities.
The main source of inflow comes from operating profits with depreciation being added back as well as working capital, less any additional pension contribution. Depreciation is therefore added because it has been charged to the profit but no cash has left the company’s account. Taking into account the figures shown were derived before tax. Cash returns from any investment as well as any investment within the business are disclosed in the investment activity of the company with the cash flow included from purchase and sales of non-current assets and acquisitions, disposals of assets all together with the investment income. The company’s finances that have taken place during the accounting period or year, showing any new debts, that can be new issues or ordinary shares, loans, as well as changes in short-term financing, leasing and short-term deposits, overdrafts, increase and decrease in cash therefore showing the debts repayments.
From what can be analysed from looking at Tesco PLC cash flow statement of 2009 is that this statement has been divided into three sections, where there is a noted description on how the revenue was generated from the company’s operating activities, this is highlighted in detail in note 33 and can be found on the cash flow statement attached in the appendix. Then the net cash used in investing activities where each proceed is shown in detail as well as the repayments and dividends paid... [continues]
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