6- Statement of Cash Flows

Question 1

Cash inflows

Answer 1

Cash received from customers (main source is revenue).
= Revenue +/- Adjustments
Adjustments (negative):
- Increase in receivable and accrued income
- Adjustments (positive): adding unearned income

Question 2

Cash outflows

Answer 2

Cash payments made to suppliers and employees for goods and services- included in expenses which include:
- Cash to suppliers and employees
- Tax expenses
= total expenses - tax expenses

Question 3

Total expenses equation

Answer 3

= cost-of-sales + other operating expenses

Question 4

Non-cash working capital equation

Answer 4

= non-cash current assets (excludes cash and other financial current assets) - non-cash current liabilities (excludes overdrafts and other financial current liabilities)

Question 5

Non-cash current assets

Answer 5

receivables + accrued income + prepaid expenses + inventory

Question 6

Non cash current liabilities

Answer 6

trade, tax and other payables + accrued expenses + unearned income