Trade Payables in Cashflow – Warrburt 12/08

Hi Michael,

That balance is the remaining part of the PPE additions which is not paid at November 2008 (100 million dinars) and this liability is not arisen from operating activities so it is need to be deduct from there. This 100 million will be only shown in cash flows from investing activities at the year end of November 2009 as it will be paid in the next financial year of the company, so this is not part of the cash flow at the year end of 2008.

I hope it is helpful.

Best regards,

@michael7656 said:
Hi,

In this question the foreign trade payables balance at the year end of $20.83 is deducted from trade payables on the cash flow statement. The balance is outstanding at the year end and I don’t understand why it would be deducted. Help!

Thank you in advance,
Michael.