Acca financial Accounting (FA) Study Text ac ca (FA)

Based upon this information, what was the cost of the inventory 

destroyed? 

$________ 

Statement of cash flows 

94  In the year ended 31 December 2005, Lamb bought new vehicles from 

Warwick Motors with a list price of $100,000 for $70,000 cash and an 

allowance against old motor vehicles of $30,000. The value of the vehicles 

taken in part exchange was $27,000. 

Lamb sold vehicles with a carrying amount of $12,000 for $15,000 cash. 

In Lamb’s statement of cash flows for the year ended 31 December 

2005, how would the above transactions be presented under the 

heading ‘Investing activities’? 

 

Cash inflow 

Cash outflow 

A – 

$76,000 

B $45,000 

$100,000 

C $15,000 

$70,000 

D $15,000 

$100,000 

 

 

 

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