Cash Flow from Operating Activities
	Operating profit					40,000
	Depreciation expenses for the year					50,000
	Operating income
	Adjustments in Working Capital
	Increase in inventory
	Increase in receivables
	Increase in payables
	Total cash flow from adjustments in working capital
	Net cash flow from operating activities
	Cash Flows from Investing Activities
	Purchase of non-current assets
	Cash Flows from Financing Activities
	Issue of share capital
	Net increase in cash
	Opening bank and cash
	Closing bank and cash

ash Flow Statements ncome Statement for Will plc year ending Sales Cost of sales Gross profit Operating costs Operating profit 31.12.X1 120,000 75,000 45,000 15,000 30,000 31.12.X2 150,000 90,000 60,000 20,000 40,000 31.12.X1 31.12.X2 tatement of Financial Position for Will plc year ending Non-current assets Cost Accumulated depreciation 500,000 100,000 400,000 575,000 150,000 425,000 Current assets Inventory Receivables Cash at bank and in hand 123,000 216,750 13,250 753,000 160,000 240,000 18,000 843,000 Current liabilities Payables 78,000 98,000 Capital and reserves Called up ordinary share capital Profit and loss account 645,000 30,000 753,000 675,000 70,000 843,000 Note: There was no disposal of any non-current assets in the year