1. Compute the profit for the period. 2. Compute cash flow from operations 3. Why is cash flow from operations different from profit of the period?
1. Compute the profit for the period. 2. Compute cash flow from operations 3. Why is cash flow from operations different from profit of the period?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Problem 4-1
The following details are obtained from the accounts book of a trading
company.
Extract from the Accounts Book of Cosmo Trading Company
Opening stock
Purchases
Sales
Closing stock
40
200
220
60
(In millions)
Opening receivables
Opening payables
Closing receivables
Closing payables
9828
40
30
Required
1. Compute the profit for the period.
2. Compute cash flow from operations
3. Why is cash flow from operations different from profit of the period?
70
50
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