Cash Flows from Operating Activities (Direct) Cash Receipts from customers (inflow) = Sales Revenue - AR DDE Discount

nt allowed Cash Paid to Suppliers and employees (outflow) Payment to suppliers for purchases= COGS (PL) + Inventory AP Payment to suppliers for services = Other Expenses (PL) + Prepayments - Other expenses payable Payments to employees = Wages and salaries Expense (PL) - wages and salaries payable Cash generated from operations = inflow - outflow Interest Received = Interest revenue (PL) - Interest receivable (CS) Interest paid = interest expense (PL) accrued interest (CS) Income tax paid (outflow) = Total Tax Expense (DTL IT(P+L) ) ( CTL) Net cash from operating activities Reconciliation Note Profit for period (after tax) Adjustments for: (PL and CS remainders) Gains are subtracted Losses are added Net cash from operating activities Cash Flows from Operating Activities (Indirect) Profit before Tax Adjustment for: (PL and CS remainders) Gains are subtracted Losses are added Cash generated from operations Interested received = Interest revenue (PL) - IR (CS) Interest paid = interest expense (PL) accrued interest (CS) Income taxes paid = Total Tax Expense (DTL IT(P+L) ) ( CTL) Net cash from operating activities Investing activities Acquisition and disposal of long-term assets and other investments not included in cash equivalents Eg. Intangibles and PPE Net cash used in investing activities Financing Activities Size and composition of contributed equity and borrowings. EG. Dividends and borrowings Net cash used in financing activities Net decrease in cash and cash equivalents (CS) Cash and cash equivalents at beg of year Cash and cash equivalents at end of year