Answer:
Indicate how each item should be classified in the statement of cash flows using these four major classifications
Explanation:
Cash flows from operating activities
Profit before taxation
Adjustments for:
Depreciation
Investment income
Interest expense
Profit / (Loss) on the sale of property, plant & equipment
Working capital changes:
(Increase) / Decrease in trade and other receivables
(Increase) / (Decrease) in inventories
Increase / (Decrease) in trade payables
Cash generated from operations
Interest paid
Income taxes paid
Dividends paid
Net cash from operating activities
Cash flows from investing activities
Business acquisitions, net of cash acquired
Purchase of property, plant and equipment
Proceeds from sale of equipment
Acquisition of portfolio investments
Investment income
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of share capital
Proceeds from long-term borrowings
Payment of long-term borrowings
Net cash used in financing activities
