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Hi John
Could you please explain the following question. I am quite confused with this.
The following amounts have been prepared for inclusion in the statement of cash flows of
Bamboo:
Tax and dividends paid $87,566
Increase in payables $13,899
Decrease in inventory $8,900
Redemption of loans $300,000
Increase in receivables $6,555
Reduction in cash and cash equivalents $3,211
Depreciation charge $10,600
Payments to acquire non?current assets $47,999
Proceeds from sale of non?current assets $13,100What is the cash generated from operations?
Why are you attempting a question for which you do not have an answer? You should be using a Revision Kit from one of the ACCA Approved Publishers – they have answers and explanations.
You know from the question what the change in cash and cash equivalents is (a reduction of $3,211).
You know from the question what the cash generated from investing activities and from financing activities are, and so you can calculate the cash flows from operating activities as the ‘missing figure’.
You know what the tax and dividends paid are, so you can go from the cash flows from operating activities back to the cash generated from operations.
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