Crows Ltd's books show the following information for the preparation of its cash flow statement for the year ended 30 June 2009: What is the amount of net cash from operating activities for the year ended 30 June 2009?
A) $445,800;
B) $453,600;
C) $454,200;
D) $489,000;
E) None of the given answers.

Question

Crows Ltd's books show the following information for the preparation of its cash flow statement for the year ended 30 June 2009:  What is the amount of net cash from operating activities for the year ended 30 June 2009?
A) $445,800; 
B) $453,600; 
C) $454,200; 
D) $489,000; 
E) None of the given answers.

Quizplus · Accepted Answer

To calculate the net cash from operating activities, we need to make adjustments to the company's net profit/loss by eliminating any non-cash items and changes in working capital. Based on the information given in the table, the net cash from operating activities is calculated as follows:
Net profit before tax: $693,000
Adjustments for:
Depreciation: $178,200
Amortisation of goodwill: $48,600
Increase in accounts receivable: $40,200
Increase in inventory: $12,600
Decrease in accounts payable: ($47,400)
Net cash from operating activities: $454,200

Crows Ltd's Books Show the Following Information for the Preparation