The following is information on the operation of King BBQ Ltd: Net profit is 50,000 Depreciation for
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Question:
The following is information on the operation of King BBQ Ltd:
- Net profit is £50,000
- Depreciation for Equipment is 3,500 using the straight-line method at 10% per annum
- Depreciation for Vehicles is 4,800 using the reducing balance method at 20% per annum
- Opening inventory is 38,000; Closing inventory is 45,000 Increase in inventory
- Opening debtors is 16,000; Closing debtors is 15,000
- Opening creditors is 8,000; Closing creditors is 10,000
- Interest paid is 1,200
- Tax paid is 7,500
Required:
Clearly show the calculation of Net Cash from Operation activities using indirect method.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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