Page 267 - F3 -FA Integrated Workbook STUDENT 2018-19

Statement of cash flows

3.2 Cash flows from operating activities

Cash flows may include:

 Cash generated from operations (either direct or indirect method as above)

 interest paid

 income taxes paid

The cash flow for individual items can be calculated by reconciling the opening and
closing balances from the statements of financial position, making use of any
additional information such as the expense for the year (included in the statement of
profit or loss). A T-account or a list/schedule approach can be used to help with
workings and calculations.

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