Question
CASH FLOW STATEMENT Charles Ltd., made a profit of Shs 100,000 after charging depreciation of Shs 20,000 on assets and a transfer to general reserve
CASH FLOW STATEMENT
Charles Ltd., made a profit of Shs 100,000 after charging depreciation of Shs 20,000 on assets and a transfer to general reserve of Shs 30,000. The goodwill amortised was Shs 7,000 and gain on sale of machinery was Shs 3,000. Other information available to you (changes in the value of current assets and current liabilities) are trade receivables showed an increase of Shs 3,000; trade payables an increase of Shs 6,000; prepaid expenses an increase of Shs 200; and outstanding expenses a decrease of Shs 2,000. Ascertain cash flow from operating activities.
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