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Excuse me, sir. I wanted to ask in this matter whether the financial expenses are included in the operating activities?
During the preparation of the cash flow statement, the following data were used to calculate the inflow of cash from operating activities:
Amortization deductions 350
Financial expenses 200
The profit from the retirement of non-current assets 100
Increase in inventory 220
Decrease in receivables 380
Increase in accounts payable 320
What is the overall impact of the above amounts on cash inflows from operating activities?Financial expenses will mean interest charges.
They are added back to the profit to get the cash generated from operating activities.
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