Question

Gold Ltd The following information is available at 30 June: 2013 2012 Trade payables Inventories Trade receivables Depreciation charged in the year Profit before tax (after interest) for the year 2,246 3,421 2,344 1,233 6,554 1,255 2,134 3,412 1,477 8,876 Required: What is the 'cash flow generated from Operations' for the business for the year ended 30 June, 2013? Cash flow generated from Operations: £ NOTE: Please ensure you enter your answers following the format used in this question. For example 1,200 NOT 1.200 NOT 1200 NOT 1,200.00 NOT 1.200,00 Failure to adhere to this format will result in Moodle marking it WRONG!!

Answer 1

Ans.	Cash flow generated from Operations	£                         8,559
	Statement of Cash Flows (partial)
	Particulars	Amount
	Cash flow from operating activities:
	Profit	6554
	Adjustments to reconcile net income to net cash
	flow from Operating Activities:
	Add: Depreciation charged	1233
	Changes in current assets and liabilities:
	Less: Increase in inventory	-1287
	Add: Decrease in trade receivables	1068
	Add: Increase in trade payable	991
	Net cash Provided by Operating Activities	8559
	*Increase in current liabilities and Decrease in current assets other than cash are added to Net Income.
	*Increase in current assets (other than cash) and Decrease in current liabilities are subtracted from Net Income.
	*Non cash & Non operating expenses are added to Net income.
	*Non cash & Non operating income are deducted from Net income.