SOCF

Question 1

What is cash generated from operations?

Answer 1

SOPL figures
Non-cash expenses
Working capital

Question 2

Example of SOPL figures?

Answer 2

Profit before tax X
Finance cost X
Investment income (X)

Question 3

Example of non-cash expenses?

Answer 3

Depreciation/amortisation X
(Profit)/loss on disposal of PPE (X)/X

Question 4

Example of working capital?

Answer 4

Increase in inventory (X)
Increase in receivables (X)
Increase in payables X

Question 5

How to calculate net cash generated from operations?

Answer 5

Cash generated from operations - Interest paid - Income taxes paid

Question 6

How to calculate cash flows from investing activities?

Answer 6

Proceeds from sale of PPE X
Purchase of PPE (X)
Interest received X
Dividends received X

Question 7

How to calculate cash flows from financing activities?

Answer 7

Issue of equity shares X
Repayment of long-term borrowings (X)
Proceeds from issue of long-term borrowings X
Dividend paid (X)

Question 8

Conclusion of cash flow?

Answer 8

Net increase/(decrease) in cash equivalents

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period