net cash flow from operating activities

foxy06

Can anyone tell me how I find the above. I am doing the IATI Exams and I can't get past this question and it's doing my head in......please help!

Legend100

Hi,

Take your profit before tax per accounts
Add back depreciation
Add back loss on disposal of fixed assets or deduct profit on disp (if any)
Add decrease in debtors or subtract increase
As Above for stock
Add increase in creditors or subtract decrease
Add interest payable
Deduct interest paid
Deduct interest receivable
Deduct tax paid


You will normally have to do a calc for tax and interest

Hope that helps!

PS someone correct me if I've left something out or made a mistake please

09_09

interest paid...u have to add it..

foxy06

Thanks lads great help

IanCurtis

Just add back/take away any amounts not directly related to the day-to-day pure operations of the business

09_09

or easy way is like..u r doing opposite to P&L ..like u ADD Profit in P&L but in Cash Flow u have to deduct it.i think this will help u.thats the way i learnt it.