Page 349 - F2 Integrated Workbook STUDENT 2019

Consolidated statement of cash flows

1.3 Cash generated from operations

Cash flows from operating activities include a line for “cash
generated from operations”.

Cash generated from operations includes all day to day operating
cash flows.

Numerous cash flows contribute to this figure. e.g. cash from sales,
purchases, wage payments, receipts from receivables.

A reconciliation between profit before tax and cash generated from
operations is often used to calculate “cash generated from
operations”.

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