Cash flow Q2

The Statement of financial position of Same Ltd for two years ending 31 December Profit from operations Investment income Finance cost Profit before tax Taxation Profit for the year Additional information 1. During the year the company sold some non-current assets which had originally cost P50000 which had a net book value of P30000. These assets were sold for cash P20 000. 2. On 30 June 2017 interim dividend of P10000 was paid on ordinary shares 3. At 31 December 2017, the directors proposed a final dividend of P40000 on ordinary shares You are required to prepare a statement of cash flow for the above company a) Explain why profit for the year is not always the same as cash flow