SOCF

Question 1

Cash generated from operation adjustment

Answer 1

Add: finance cost, depreciation, loss, decrease in inventory and trade receivables

Minus: finance income, profit, increase in trade payable

Question 2

What is cashflow from operating activities

Answer 2

Revenue producing activities

Cash generated from operations
Interest paid
Income tax paid

Question 3

What is cashflow from investing activities

Answer 3

Cash from purchase/sale of NCA and income from investments

Purchase of PPE, proceeds of sale of PPE, interest rec, dividend rec

Question 4

What is cashflow from financing activities

Answer 4

cash flow from long term financing

proceeds of issue of shares, repayment of loans, dividends paid

Question 5

Formula for RE

Answer 5

BF, PFTY, Reval transfer= x
x - bonus issue, irredeemable pref dividend, dividend paid (b) = CF