The cash flow statement provides information on the cash that is obtained from operating activities, which are the core objects of an entity...” (Thomas, A. & Ward, A.M. 2019 pp576)You are required to discuss why the net cash from operations is different from the net profit and the impact which the management of working capital has on cash flow. Develop your response through more detailed discussion of the broad range of issues and considerations associated with the management of one element of working capital i.e. inventory, trade receivables or trade payables.

Cash Flow Statement Cash flow statement which has three important segment are there. These segment…

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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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The cash flow statement provides information on the cash that is obtained from operating activities, which are the core objects of an entity...” (Thomas, A. & Ward, A.M. 2019 pp576)

You are required to discuss why the net cash from operations is different from the net profit and the impact which the management of working capital has on cash flow. Develop your response through more detailed discussion of the broad range of issues and considerations associated with the management of one element of working capital i.e. inventory, trade receivables or trade payables.

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