You have been asked to prepare the statement of cash flows for Neo Ltd for the yearended 30 November 2021.The most recent income statement and statement of financial position (withcomparatives for the previous year) of Neo Ltd are set out below.Neo Ltd – Income Statement for the year ended 30 November 2021Revenue104,567Cost of sales(71,358)Gross profit33,209Profit on disposal of property, plant andequipment10633,315Distribution costs(12,789)Administrative expenses(16,371)Profit from operations4,155Finance costs(608)Profit before tax3,547Тах(726)Profit for the period2,821 a) Prepare the statement of cash flows for Neo Ltd for the year ended 30November 2021 using the indirect method.

Cash Flow statement from Indirect Method

ed 30 November 2021. most recent income statement and statement of financial positi nparatives for the previous year) of Neo Ltd are set out below. Ltd – Income Statement for the year ended 30 November 2021 evenue 104,567 pst of sales (71,358)

ed 30 November 2021. most recent income statement and statement of financial positi nparatives for the previous year) of Neo Ltd are set out below. Ltd – Income Statement for the year ended 30 November 2021 evenue 104,567 pst of sales (71,358)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter4: Financial Planning And Forecasting

Section: Chapter Questions

Problem 2P

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Question

You have been asked to prepare the statement of cash flows for Neo Ltd for the year
ended 30 November 2021.
The most recent income statement and statement of financial position (with
comparatives for the previous year) of Neo Ltd are set out below.
Neo Ltd – Income Statement for the year ended 30 November 2021
Revenue
104,567
Cost of sales
(71,358)
Gross profit
33,209
Profit on disposal of property, plant and
equipment
106
33,315
Distribution costs
(12,789)
Administrative expenses
(16,371)
Profit from operations
4,155
Finance costs
(608)
Profit before tax
3,547
Тах
(726)
Profit for the period
2,821

a) Prepare the statement of cash flows for Neo Ltd for the year ended 30
November 2021 using the indirect method.

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