Interactive workbook: Go back over this again - Exercise 6.9 – Recap of Table 6.1 - Introduction to Accounting 2e Student Resources

The statement of cash flows

Instructions

Listed below are the adjustments that are made to profit for the year in the statement of profit or loss when calculating the cash flow from operating activities using the indirect method. Think about whether each of these factors should be added to or deducted from operating profit in the cash flow from operating activities calculation.

a)	Profit on disposal of non-current assets
b)	Increase in receivables
c)	Increase in payables
d)	Decrease in provisions
e)	Finance expense
f)	Decrease in payables
g)	Depreciation of non-current assets
h)	Increase in inventory
i)	Loss on disposal of non-current assets
j)	Increase in accruals
k)	Finance income
l)	Decrease in inventory
m)	Increase in provisions
n)	Amortization of intangible non-current assets
o)	Decrease in prepayments
p)	Decrease in accruals
q)	Income tax charge
r)	Decrease in receivables
s)	Increase in prepayments

Page reference: 280-282
Heading reference: The indirect method: cash flows from operating activities: inflows or outflows?.

a)
b)	Increase in receivables
c)	Increase in payables
d)	Decrease in provisions
e)	Finance expense
f)	Decrease in payables
g)	Depreciation of non-current assets
h)	Increase in inventory
i)	Loss on disposal of non-current assets
j)	Increase in accruals
k)	Finance income
l)	Decrease in inventory
m)	Increase in provisions
n)	Amortization of intangible non-current assets
o)	Decrease in prepayments
p)	Decrease in accruals
q)	Income tax charge
r)	Decrease in receivables
s)	Increase in prepayments