Following are a company's operating activities: Particulars

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Question:

Following are a company's operating activities:

Particulars Amount

Depreciation on machinery 6500

Increase in creditors 8000

Increase in stock 5000

Increase in payables 30000

Net profit before taxes 110000

Increase in debtors 8600

Q A: Calculate the cash flow.

QB: If the cash flow of the company from the operating activities comes to (140000), what does this indicate?

Related Book For answer-question

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

ISBN: 978-1337614689

9th edition

Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

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Posted Date: Sep 28, 2023 03:48 AM

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Following are a company's operating activities: Particulars

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Expert Answer:

To calculate the cash flow from operating activities you can use the indirect method H... View the full answer

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

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