Brian Ridge Ltd, a construction company, has extracted the following cash flows from its books as at
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Brian Ridge Ltd, a construction company, has extracted the following cash flows from its books as at 30 November 2001.
Operating profit 25,000 Interest paid Increase in stock over year 3,500 Increase in long-term creditors Increase in debtors over year 1,300 Purchase of plant and Increase in creditors over year 800 machinery Depreciation for year 6,000 Share capital issued Tax paid 23,500 Dividends paid Interest received 3,000 Purchase of patents Required:
8 500 4,600 18,350 3,200 550 1,650 Prepare a cash flow statement using the indirect method. The operating profit has already been adjusted for the interest paid and received (so do not adjust again!).
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