I am reading a companies AR and this is what it says .
Cash Flow from Operating Activites
Net Profit before Tax and Extrordinary Items 500 Million
Adjustment for Non Cash Items
Depreciation
Interest Charged
Proft Loss on Sale of assets etc 200 Million
Adjustment for changes in working capital
Inc /Dec in sundry debtors
Inc / Dec in current liabilities
Inc / Dec in Loan
Inc / Dec in Inventories (1500) Million
Net is -800 Million
Now what is the meaning of this Adjustments for working capital , how come the company which makes profit has a negative cash flow from operating capital , what is the meaning of the high negative value for inventory ?
1 second ago - 4 days left to answer.
Cash Flow from Operating Activites
Net Profit before Tax and Extrordinary Items 500 Million
Adjustment for Non Cash Items
Depreciation
Interest Charged
Proft Loss on Sale of assets etc 200 Million
Adjustment for changes in working capital
Inc /Dec in sundry debtors
Inc / Dec in current liabilities
Inc / Dec in Loan
Inc / Dec in Inventories (1500) Million
Net is -800 Million
Now what is the meaning of this Adjustments for working capital , how come the company which makes profit has a negative cash flow from operating capital , what is the meaning of the high negative value for inventory ?
1 second ago - 4 days left to answer.