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Sir,
why should we take profit before tax and add back any interest expenses before finding the net cash flow from activities? are we checking for any errors, omissions… in the profits found in financial/ income statements?Sir,
help me understand, in the statement of financial position, what items are found under EQUITY, are there fixed items ( I noticed Share capital is found there- ordinary shares and preference shares, Loan stocks- income for assets as security, Reserves- profits for dividend payments, surplus from assets… what is EQUITY?For me to answer all of this would be simply typing out all my free lectures, and I am not going to do that!!
You must watch the free lectures.
The lectures on Statement of cash flows answer your first question – it has nothing to do with errors or omissions, but is simply showing why cash was received and paid.
Equity is ordinary share capital plus reserves.
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