The following information is from the accounts of Neway Ltd for the years 2018 and 2019Neway LtdSummary of the statement of comprehensive income20192018$m$mSales revenue650615COGS305295Gross profitInterest expenseOther expenses (including depreciation)Profit320(13)(100)345(15)(120)21020763Depreciation expenseAccounts payable at the end of the periodAccounts receivable at the end of the period|Inventory held at the end of the period85302534466557Required:a) Prepare a statement of cash flows from operations for Neway Ltd.b) Prepare a statement that reconciles the profit with the cash flows from operations.

Cash flow statement are prepared in order to ascertain the actual cash…

Answered: Required: a) Prepare a statement of…

Required: a) Prepare a statement of cash flows from operations for Neway Ltd. b) Prepare a statement that reconciles the profit with the cash flows from operations.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The following information is from the accounts of Neway Ltd for the years 2018 and 2019
Neway Ltd
Summary of the statement of comprehensive income
2019
2018
$m
$m
Sales revenue
650
615
COGS
305
295
Gross profit
Interest expense
Other expenses (including depreciation)
Profit
320
(13)
(100)
345
(15)
(120)
210
207
63
Depreciation expense
Accounts payable at the end of the period
Accounts receivable at the end of the period
|Inventory held at the end of the period
85
30
25
34
46
65
57
Required:
a) Prepare a statement of cash flows from operations for Neway Ltd.
b) Prepare a statement that reconciles the profit with the cash flows from operations.

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