Dear Sirs, I am confused as to how I can distinguish which part of the receivables and payables are for interest and tax and for what year, without a balance sheet and income statement, given only the following as the question:
A's Statement of cash flow YE 31 October 20X8 ($000)
Profit before tax 2,200
Finance cost 600
Depreciation 1,992
Gain on disposal of assets (25)
Inventory (250)
Receivables (150)
Payables (70)
Cash generated from Operations 4,297
1) What would be the tax paid amount for the year ended 31 Oct 20X8?
2) What would be the interest paid amount for the year ended 31 Oct 20X8?
Thanks again in advance.
CIMA Forums
Calculating Tax and Interest Paid from Cash generated from Operations
9y ago#1Hi,
Are you not given any further information in the question? The interest paid may be the same as the finance cost, assuming there are no interest accruals on the SFP. Other than this there has to be further information available to calculate the figure required.
Thanks
These were my thoughts exactly, but that's all the information given in the question, which is why I was perplexed. These are all Kaplan practice questions. Thanks for getting back to me.
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