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Interest paid IAS 7

In chapter 5 The Statement Of Cash Flows in the BPP book, test 6 contains a question on the reconciliation of the profit from operations to net cash from operating activities.

I thought that interest paid and tax paid come after Cash generated from operations. In the answer the interest paid has been added to the profit from operations and deducted from cash generated from operations so they have been netted off.

Please advise if this is forest as the book only states that interest paid and tax paid are deducted from cash generated from operations.
Kind regards,

Comments

  • Turbo_DaveTurbo_Dave Registered Posts: 23
    Ah sneaky. It's because it states profit before tax in the question so interest paid will need to be added back on as in the profit and loss it's profit from operations less interest paid less tax
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