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Compare the cash generation and uses of Sainsbury’s in 2017 relative to 2016. In particular, comparatively assess the strengths and weaknesses of each part (CFO, CFI and CFF).

Compare the cash generation and uses of Sainsbury’s in 2017 relative to 2016. In particular, comparatively assess the strengths and weaknesses of each part (CFO, CFI and CFF).

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Compare the cash generation and uses of Sainsbury’s in 2017 relative to 2016. In particular, comparatively assess the strengths and weaknesses of each part (CFO, CFI and CFF).

Financial Statements 109 Consolidated cash flow statement for the 52 weeks to 11 March 2017 2017 2016 Note £m £m Cash flows from operating activities Cash generated from operations Interest paid 25a 1,323 624 (95) (108) Corporation tax paid (75) (124) Net cash generated from operating activities 1,153 392 Cash flows from investing activities Purchase of property, plant and equipment Purchase of intangible assets Proceeds from disposal of propertų, plant and equipment (634) (646) (110) (34) 55 109 Receipt of advance disposal proceeds 125 Acquisition of subsidiaries, net of cash acquired 101 Capital return to Home Retail Group plc shareholders 31 (226) Share issuance costs on acquisition of Home Retail Group plc (3) Investment in joint ventures 12 (16) (18) Disposal of subsidiaries (1) Interest received 18 19 Dividends and distributions received 65 46 Net cash used in investing activities (750) (400) Cash flows from financing activities Proceeds from issuance of ordinarų shares 6 8 Drawdown of short-term borrowings 448 Office or Mao Repayment of short-term borrowings (492) (95) Repayment of long-term borrowings (130) (238) Proceeds from the issue of perpetua' capıtal secuI Proceeds from the issue of prpe ai cunver 'ble bonds mac.wp n/ 21 247 21 247 Purchase of own shares (20) Repayment of canita e. n nt Fobligations under finance lease payments Interest elementsa liga ons under fince lease payments Dividends paid on orduiary shares (37) (30) (8) (9) 9 (230) (234) Dividends paid on perpetual sec rities Net cash used in finar. ci g activities 21 (23) (4) (466) (128) Net decrease in cash and cash equivalents (63) (136) Opening cash and cash equivalents 1.140 1,276 Effects of foreign exchange rates Closing cash and cash equivalents 25b 1.077 1.140 The notes on pages 111 to 177 form an integral part of these financial statements.
Transcribed Image Text:Financial Statements 109 Consolidated cash flow statement for the 52 weeks to 11 March 2017 2017 2016 Note £m £m Cash flows from operating activities Cash generated from operations Interest paid 25a 1,323 624 (95) (108) Corporation tax paid (75) (124) Net cash generated from operating activities 1,153 392 Cash flows from investing activities Purchase of property, plant and equipment Purchase of intangible assets Proceeds from disposal of propertų, plant and equipment (634) (646) (110) (34) 55 109 Receipt of advance disposal proceeds 125 Acquisition of subsidiaries, net of cash acquired 101 Capital return to Home Retail Group plc shareholders 31 (226) Share issuance costs on acquisition of Home Retail Group plc (3) Investment in joint ventures 12 (16) (18) Disposal of subsidiaries (1) Interest received 18 19 Dividends and distributions received 65 46 Net cash used in investing activities (750) (400) Cash flows from financing activities Proceeds from issuance of ordinarų shares 6 8 Drawdown of short-term borrowings 448 Office or Mao Repayment of short-term borrowings (492) (95) Repayment of long-term borrowings (130) (238) Proceeds from the issue of perpetua' capıtal secuI Proceeds from the issue of prpe ai cunver 'ble bonds mac.wp n/ 21 247 21 247 Purchase of own shares (20) Repayment of canita e. n nt Fobligations under finance lease payments Interest elementsa liga ons under fince lease payments Dividends paid on orduiary shares (37) (30) (8) (9) 9 (230) (234) Dividends paid on perpetual sec rities Net cash used in finar. ci g activities 21 (23) (4) (466) (128) Net decrease in cash and cash equivalents (63) (136) Opening cash and cash equivalents 1.140 1,276 Effects of foreign exchange rates Closing cash and cash equivalents 25b 1.077 1.140 The notes on pages 111 to 177 form an integral part of these financial statements.
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