Q1Operating expenses include a loss on disposal of noncurrent assets of$5,000During the year plant which originally cost $80,000 and withdepreciation of $15,000 was disposed of.Calculate the cash generated from operations using the indirect method Current LiabilitiesTrade PayablesDividend PayableInterest Accrual4752303275Таx7667156151Total Liabilities115789Income statement of Ahmed at 31 December 20X6Sales revemueCost of salesS001,100(678)Gross profitOperating expenses422(309)Operating profitInvestment income interest11315dividends57Finance chargeIncome tax(22)(71)Net profit for year94 Q1.Statement of financial position of Ahmed at 31 December20X620X5$001,048(190)s00750Noncurrent assetsAccumulated depreciation(120)858630Current assetsInventoryTrade receivables9810510286Dividend receivable5750Cash4218299259Total assets1,15788920X620X5so0S00Capital and reservesShare capitalShare premium200120Revaluation reserveAccumulated profits1062122838012226801438Noncurrent liabilitiesLoan200300

Cash flow in the daily operations of the entity is to be taken to the operating activities section…

Q1 Operating expenses include a loss on disposal of noncurrent assets of $5,000 During the year plant which originally cost $80,000 and with depreciation of $15,000 was disposed of. Calculate the cash generated from operations using the indirect method

Q1 Operating expenses include a loss on disposal of noncurrent assets of $5,000 During the year plant which originally cost $80,000 and with depreciation of $15,000 was disposed of. Calculate the cash generated from operations using the indirect method

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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