An extract from a statement of cash flows prepared by a trainee accountant is shown below.
$ | |
Profit before taxation | 615 |
Depreciation charges | 630 |
Profit on sales of plant | 630 |
Increase in inventories | (117) |
Decrease in receivables | (66) |
Increase in payables | 33 |
Cash generated from operations | 1,725 |
What is the figure in the statement of cash flow in respect of net cash flow from operating activities?
Suggested solutions:
$ | |
Net profit before taxation | 615 |
Adjustment for depreciation | 630 |
Operating profit before working capital changes | 1,245 |
Decrease in inventories | 117 |
Increase in receivables | (66) |
Increase in payables | 33 |
Cash generated from operations | 1,329 |