SoFP Notes Flashcards
(3 cards)
1
Q
How do you deal with inventory?
A
Inventory: £ Raw materials WIP Finished Goods BALANCE
2
Q
How do you deal with assets?
A
Cost: £ Opening Additions (new asset cost) Disposals (cost old asset sold for) Closing (Asset cost)
Accumulated Dep: Opening Depreciation charge (Dep Charge) Disposals (Old asset-NBV) Closing (asset depreciation)
Netbook Value:
Current Year
Prior Year
3
Q
What are 4 transactions that can cause differences between cash and profit?
A
- Credit sales: customer pays later
- Inventory purchase: sold in future
- Loan Repayment: cash paid out
- Pay cash to buy plant and machinery
