cash flow statement

First things first, have you watched the videos? Answer me that, please, and then we can move forward

No, but review this topic from opentution notes

If you had watched the videos, you shouldn't have needed to ask these questions! That's why the lectures have been videod! "In cash flow statement, why investment income & interest expense is included in operating cash flows??" - because these two are both non-cash items and we're trying to arrive at a CASH based statement "2: whether profit is deducted and loss is added in operating cash flows, if yes then why??" - because profits and losses are not cash items and we're trying to arrive at a CASH based statement "3 : why profit or loss on asset disposal is included in operating cash flows??" - because profits and losses on asset disposals are not cash items and we're trying to arrive at a CASH based statement All the items that you have raised will already have been included within the statement of profit or loss and we are trying to eliminate the non-cash items in order to arrive at a cash-based statement showing the movement of cash. I'm surprised that you didn't also ask "Why is depreciation on assets added to the profit in operating activities - surely depreciation is an expense and should be deducted?"

Because it was clear to me that depreciation is a non cash expense.

And a loss on disposal? That is also a non-cash expense!

If notes payables is given in current liabilities, either we treat it as an operating cash flow or financing cash flow??

"Notes payables"? What are they? I don't recognise the name, sorry? Do you mean "Payables"? or possibly "Trade payables"?

Such as loan notes

Why would loan notes be in current liabilities? Only because, for example, a five year loan was taken 4 years ago. All it means is that the loan is now in its last year before repayment. the only possible alternative is if the loan was borrowed this year and is repayable within the next twelve months after the year end. Operating or financing? Probably financing ..... but it's not going to happen! (in the exam)

And accrued wages?? Will we treat it as increase/decrease in accruals??

Where will you find "accrued wages" in a set of financial statements? And will you also find accrued telephone and accrued electricity? And prepaid rates? Prepaid motor insurance? They're all included within "Payables" and "Receivables"!