CF FROM OPERATING ACTIVITIES

Indirect Methods
RM
Profit before tax 104,000

Ajustments for:
Depreciation 25,000
Gain on sale of plant -4,000
Interest Income -5,000
Interest expense 4,000
Increase in AR -9,000
Increase in inventory -5,000
Increase in prepayments -1,500
Increase in account payables 3,000
Decrease in other payables -200
Cash generated from operations 111,300

Interest received 5,050

Interest paid -3,800
Income taxes paid -25,000

Net cash from operating activities 87,550

Steps
1 Start with PBT
Adjust for non-cash items e.g. depreciations, impairments, gain/loss
2 of assets sold
3 Adjust activities (increase/decrease or inflow/outflow of CA or CL)
from financial position that affects operation e.g. AP, inventory, AP
etc)

4 Adjust for tax and interest (depends whether in investing/financing)