The following are the financial statements Quick Ltd. for the year ended 31^st December 2020:

Quick Ltd.
Income statement
For year ended 31st December 2020
	$”000”
Revenue	1276.50
Cost of sales	(907.00)
	369.50
Distribution costs	(62.50)
Administrative expenses	(132.00)
	175.00
Interest received	12.50
Interest paid	(37.50)
Profit before tax	150.00
Tax	(70.00)
Profit after tax	80.00

Quick Ltd.
Statement of financial position as at 31 December
	2020	2019
	$”000”	$”000d”
ASSETS:
Non- current assets:
Property, plant and equipment	190	152.5
Intangible assets	125	100
Investments		12.5
Current assets:
Inventories	75	51
Receivables	195	157.5
Short-term investment	25
Cash in hand	1	0.5
Total assets	611	474
Equity and liabilities:
Equity:
Share capital	100	75
Share premium	80	75
Revolution reserve	50	45.5
Retained earnings	130	90
Non-current liabilities:
Loan	85	25
Current liabilities:
Trade payables	63.5	59.5
Bank overdraft	42.5	49
Tax	60	55
Total equity and liabilities	611	474

Required:

Determine the Net cash flows from the operating activities of Quick Ltd for the year ended 31^st December 2020. (Hint – use the indirect approach for the preparation of the statement of cash flows)

Answer rating: 100% (QA)

Here are the calculations for determining the net cash flows from operating activities of Quick Lt... View the full answer