Cash Flow

Topics: Cash flow statement, Generally Accepted Accounting Principles, Inventory Pages: 2 (275 words) Published: June 19, 2013
Cash flow statements
Questions.
1. A company has a profit from operations of £20,500 for the year ended 31 December 20X2.The depreciation charge for the year is £4000.Profit from operations also includes a loss on disposal of £500 on an item of plant. Extracts from the statement of financial position as shown below.

20X2 20X1
Inventory £17,400£16,100
Receivables £21,500 £20,500
Trade Payables £18,400 £17,600
Ignore the interest and Tax.
Calculate the cash generated from the operation?

 |  | Decrease |  | Increase |
Inventories | | Cash Inflow |  | (Cash outflow )|
 | | |  |  |
Receivables | | Cash Inflow |  | (Cash outflow )|
 | | |  |  |
Trade Payables | (Cash outflow )|  | Cash Inflow |

Q2.Extracts from the financial position of Barking Ltd
20X6 20X5
Inventory £5,100£5,800
Receivables £7,500 £7,000
Trade Payables £5,700 £6,000
Profit from operations and Deprecations for the year ended 30th of June 20x6 were £20,000 and £5,000 respectively . Calculate the cash generated from the operations for the year ended 30/06/20x6?

The Direct Method
1.A company has a profit from operations of £20,500 for the year ended 31 December 20X2.The depreciation charge for the year is £4000.Profit from operations also includes a loss on disposal of £500 on an item of plant. Revenue £100,000

Cost of Sales £59,700
£40,300
Operating expenses (including Deprn ,Loss on disposal) £19,800 Profit from operations £20,500
Extracts from the statement of financial position as shown below.
20X2 20X1
Inventory £17,400£16,100
Receivables £21,500 £20,500
Trade Payables £18,400 £17,600
Ignore the interest and Tax.
Calculate the cash generated...
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