Questions on statement of cash flow

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(30-04-2013, 12:31 AM)safetyfirst Wrote: let me attempt to explain...

(Increase)/Decrease in trade and other receivables, and prepayments (21,577,906) 11,015,633
Increase/(Decrease) in trade payables, other payables and accruals, and provisions 12,030,882 (24,831,569)

when there is an increase in trade receivables, you are allowing your customers to pay you late, so the () denotes a decrease in cashflow

when there is an increase in trade payables, you are delaying payment to your suppliers, so there is increase in cashflow and therefore no brackets

A similar logic for contracts in progress & inventories.

Try reading an accounting text for more examples, it has to do with reconciling many other items that make up the net profits

if () denotes a decrease in cashflow, why is it put as increase? See bold.
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Messages In This Thread
Questions on statement of cash flow - by Some-one - 30-04-2013, 12:21 AM
RE: Questions on statement of cash flow - by Some-one - 30-04-2013, 12:48 AM
Questions on statement of cash flow - by godjira1 - 30-04-2013, 05:19 PM

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