Highlights
Task:
Operating activities:
What does the operating activities section of the cash flow show?
Then line by line, starting with operating profit (or whatever profit your company starts with) explain the numbers.
Operating profit – is it up or down? Why? What is the reason the company gives for this?
Adjust operating profit for non cash items explaining the difference between profit and cash. Is this up or down? Is this different from the profit movement?
Analyse the working capital movements line by line
Explain interest movement if it is included here
Explain tax paid
Suitability for investment:
Based on the information you have gathered in the cash flow and elsewhere come to a conclusion on whether an investor should invest or not
Bibliography:
? Acorn Professional Tutors. (Year of Publication Not Stated). Statement of Cash Flows for
? IS ALL ABOUT PEOPLE. INTRODUCING WHITBREAD. Available:
http://www.whitbread.co.uk/about-us/index.html.
Last accessed: 25 th February 2015
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