Statement of cash flows (operating activities) Flashcards
1
Q
What is section 1 of the statement of cash flows?
A
Operating activites
2
Q
Operating profit
A
Add
3
Q
Depreciation
A
Add
4
Q
Loss on disposal of non-current assets
A
Add
5
Q
Profit on disposal of non-current assets
A
Subtract
6
Q
Decrease in inventory
A
Add
7
Q
Decrease in trade receivables
A
Add
8
Q
Why add a decrease in inventory?
A
Because it is good for cash flow
9
Q
Increase in trade payables
A
Add
10
Q
If the whole section is positive?
A
Cash from operating activities
11
Q
Interest paid
A
Subtract
12
Q
Tax paid
A
Subtract
13
Q
If Overall section is positive? (final entry of this section)
A
Net cash from operating activities
Net cash used in operating activities
