Cash Flow Statement The following information has been extracted from the books of Betts Ltd: Profit and Loss (extract) for year ended 31/12/2020 Operating profit €152,000 Interest paid €24,000 Taxation €38,000 Dividends paid €42,000 Retained profit €52,000 Profit and loss balance 01/01/2020 €83,000 Profit and loss balance 31/12/2020 €91,000 Balance Sheets as at 31/12/2020 € € Fixed Assets Land and buildings 890,000 Less depreciation provision (140,000) Current Assets Stock €89,000 Debtors €55,000 Bank €26,000 Less Creditors: amounts falling due within 1 year Creditors €55,000 Taxation €38,000 Total Net Current Assets €71,000 Total Net Assets €821,000 Financed by: Creditors: amounts falling due after 1 year 7% Debentures €190,000 Capital and Reserves Ordinary share capital issued €540,000 Share premium €10,000 Retained profit €81,000 Total €821,000 Required: (a) Reconcile the operating profit to net cash inflow/outflow from operating activities - Leaving Cert Accounting - Question 6 - 2021

Worked Solution & Example Answer:Cash Flow Statement The following information has been extracted from the books of Betts Ltd: Profit and Loss (extract) for year ended 31/12/2020 Operating profit €152,000 Interest paid €24,000 Taxation €38,000 Dividends paid €42,000 Retained profit €52,000 Profit and loss balance 01/01/2020 €83,000 Profit and loss balance 31/12/2020 €91,000 Balance Sheets as at 31/12/2020 € € Fixed Assets Land and buildings 890,000 Less depreciation provision (140,000) Current Assets Stock €89,000 Debtors €55,000 Bank €26,000 Less Creditors: amounts falling due within 1 year Creditors €55,000 Taxation €38,000 Total Net Current Assets €71,000 Total Net Assets €821,000 Financed by: Creditors: amounts falling due after 1 year 7% Debentures €190,000 Capital and Reserves Ordinary share capital issued €540,000 Share premium €10,000 Retained profit €81,000 Total €821,000 Required: (a) Reconcile the operating profit to net cash inflow/outflow from operating activities - Leaving Cert Accounting - Question 6 - 2021