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Chapter 20

Example 1: Solution

$
Profit before tax 69,000
Depreciation 10,000
Finance costs payable 3,000
Investment income (13,000)
Loss on disposal of non-current assets 4,000
Decrease in inventories (35,000 – 25,000) 10,000
Increase in receivables (24,000 – 28,000) (4,000)
Increase in payables (31,000 – 33,000) 2,000
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Cash generated from operations 81,000
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