For a newly established entity, the expected cash flows from the 3 different activities would be as below:
1. Cash Flows from Operating activities: Cash outflows due to :
a) Increase in debtors
b) Increase in inventory
c) Increase in other current assets
Cash inflows would be due to:
a) Increase in Creditors
2. Cash Flows from Investing Activities:
Cash outflows due to
a) Purchase of Fixed Assets
b) Purchase of investment
3. Cash flows from Financing Activities. Cash inflows due to :
a) Issue of share capital
b) Receipt of loan from the bank
c) Issue of Debentures
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