In the course of preparing a company's statement of cash flows, the following figures are to be included in the calculation of net cash from operating activities.
| Depreciation charges |
| Profit on sale of non-current assets |
| Increase in inventories |
| Decrease in receivables |
| Increase in payables |
| Net profit before tax |
| Proceeds of Net profit before tax |
| Proceeds of sale of non-current assets |
Identify these items to be addition to or substraction from operating profit.
Suggested solutions:
| Depreciation charges | Addition to operating profit |
| Profit on sale of non-current assets | Substraction from operating profit |
| Increase in inventories | Substraction from operating profit |
| Decrease in receivables | Addition to operating profit |
| Increase in payables | Addition to operating profit |
| Net profit before tax | Addition to operating profit |
| Proceeds of sale of non-current assets | investing activities cash flow |
To do the same topic again in ACCA F3 Operating Cash Flow 1
To do another topic in ACCA F3
2015 ACCA F3 OPERATING CASH FLOW