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Extract from the financial statement of CFS Ltd are set out below.
Statement of profit or loss for the year ended 31 December 2000
$000 $000
Turnover 300
Cost of sales (150)
Gross profit 150
Profit on sale of fixed asset 75
225
Expenses 15
Depreciation 30
(45)
Net profit 180
Balances at 31 December
1999 – 2000
$000 $000
Stock, debtors, current liabilities (net) 40 50
What figure would appear in the cash flow statement of CFS Ltd for the year ended.
31st December 2000 in respect of net cash flow for cash from operating activities?
A $125 B $145 C $215 D $235I got the answer as 145 meanwhile my book says 125. could someone help me please?
I get the same, 145. The only way I could get to 125 is if the net current assets figure was in brackets, ie a net current liability position. Or possibly the figures are transposed and the question should be showing an increase in these net assets.
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