Analysis of differences between profit and cash flows from operations LO1, 5 Obtain the
Question:
Analysis of differences between profit and cash flows from operations LO1, 5 Obtain the financial statements of Bega Cheese Limited for 2015 or 2016, which includes 2015 comparative figures. The company’s profit for 2015 was $12 408 000. However, cash used in operations was $17 345 000 during the same period. Required Prepare a report for non-accountants to: 1. explain how a company can make a profit without generating positive net operating cash flows during the same period 2. identify the major factors contributing to the difference between Bega Cheese Limited’s profit and cash from operating activities during 2015.
Step by Step Answer:
Financial Reporting
ISBN: 978-0730363361
2nd Edition
Authors: Janice Loftus ,Ken Leo ,Sorin Daniliuc ,Belinda Luke ,Hong Nee Ang ,Karyn Byrnes