Commenting on cash flow statements

wonderwife2008

Where do I start? I understand the logic behind it but not how to go about presenting this. I have no comparative year but my data is as follows: I'd be grateful if anyone could give me some hints or tips on how to go about this. I feel like a dunce :crying:

Newton Ltd

Company Cash Flow Statement for the year ended 31 December 2005

£000

Net cash from operating activities 3,638**

Investing Activities

Purchase of Non-current Assets (5,518)

Proceeds from Sale of Non-current Assets 500

Net cash used in investing activities (5,018)

Financing activities

Proceeds from the issue of share capital 595

Proceeds from long term borrowings 505

Dividends paid (30)

Net cash (used in)/from financing activities 1,070

Net increase/(decrease) in cash and cash equivalents (310)

Cash & cash equivalents at the beginning of the year (110)

Cash & cash equivalents at the end of the year (420)

**Reconciliation of profit from operations to net cash flow from operating activities

£000
Profit from operations 2,440
Adjustments for:
Depreciation 2640
Loss on sale of non-current asset 250
Increase in inventories (1,522)
Increase in trade receivables (760)
Increase in trade payables 1,225
Cash (used in)/from operations 4,273
Interest paid (235)
Tax paid (400)
Net cash (used in)/from operations 3,638

Steve Collings

Answered here for you

Regards

Steve