statement of cash flows

Question 1

Operating activities

Answer 1

Add - Profit from operations
Add - Depreciation
Add - Loss on disposal of NCA’s
Subtract - Profit on disposal of NCA’s
Add - Decrease in inventory OR
Subtract - increase in inventory
Add - Decrease in trade receivables OR
Subtract- Increase in trade receivables
Add - Increase in trade payables OR
Subtract - Decrease in trade payables
Cash from operating activities if total positive
or
Cash used in operating activities if total negative
Subtact - interest paid
Subtract - Tax paid
Net cash from operating activities if total is positive
or
Net cash used in operating activities if total is negative

Question 2

Investing activites

Answer 2

Add - Sale of NCA’s
Subtract- Purchase of NCA’s
Add - Interest received and dividends received
Cash from investing activities if total is positive
or
Cash used in investing activities if total is negative

Question 3

Financing Activities

Answer 3

Add - Issue of shares, including share premium
Add - new loans or debentures
Subtract- Repayment of loans, debentures or shares
Subtract - dividends paid
Cash from financing activities if total is positive
OR
Cash used in financing activities if total is negative