dfs dec 2009
taskey
Registered Posts: 1,800 Beyond epic contributor 🧙♂️
task 1.7
how do they arrive at the answer for cash from operating activities, i am stumped.
thanks
Tracy
how do they arrive at the answer for cash from operating activities, i am stumped.
thanks
Tracy
0
Comments
-
That is what I calculated in 1.6:
6825 = Profit from operations
Adjustments:
(455) = Gain on disposal - deducted in the IS, but is an investing activity.
4398 = Depreciation - given in the question and just a book adjustment and no cash outflow.
91 = Trade and other receivables (decrease compared to last year, so more cash freed up)
(1638) = Inventories (increase compared to last year, so more cash tied up)
(546) = Trade and other payables (decrease compared to last year, so more cash paid)
(595) = Interest paid during the year, taken from the IS
(658) = Tax - last year's as that has been paid and this years tax is now a liability.
7422
Does this help at all?0 -
That is what I calculated in 1.6:
6825 = Profit from operations
Adjustments:
(455) = Gain on disposal - deducted in the IS, but is an investing activity.
4398 = Depreciation - given in the question and just a book adjustment and no cash outflow.
91 = Trade and other receivables (decrease compared to last year, so more cash freed up)
(1638) = Inventories (increase compared to last year, so more cash tied up)
(546) = Trade and other payables (decrease compared to last year, so more cash paid)
(595) = Interest paid during the year, taken from the IS
(658) = Tax - last year's as that has been paid and this years tax is now a liability.
7422
Does this help at all?
yes it does, although looking through my papers now i am missing pages - about to go an reprint them all aarrgghh
stressed
tracy0 -
Adlington Ltd
Reconciliation of profit from operations to net cash from operating activities
for year ended 31 October 2009
£ 000
Profit from operations 6,825
Adjustments for depreciation 4,398
Gain on disposal of property, plant and equipment (455)
Operating cash flows before movements in working capital 10,768
Decrease/(Increase) in inventories (1,638)
Decrease/(Increase) in trade receivables 91
(Decrease)/Increase in trade payables (546)
Cash generated by operations 8,675
Tax paid (658)
Interest paid (595)
Net cash from operating activities 7,4220 -
Don't stress, not helping. I'm sure you will be fine!0
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