plz solve this question asap!

[kamranACA]

Q8Information from the Balance sheet of a company is as follows

31 august 2003 31 august 2002
stock 20,000 14,000
trade 16,000 18,000
debtors 12,000 10,000
48,000 42,000
trade creditors 14,000 17,000
34,000 25,000

company is preparing the cash flow statement for the year ended 31 august 2003.in relation to the items above,what should be the net adjustment to operating profit in order to determine the net cash flow from operating activities?

Adeduct $1,000
Bdeduct $2,000
Cdeduct $7,000
Dadd back $1,000

CLARIFICATION REQUIRED

YOUR QUESTION IS NOT CLEAR AS SOME FIGURES SO NOT SHOW THE NOMENCLATURE OF THE BALANCES.

However, it is very simple to solve this question. Note down the tip.

You have to calculate differences of balances from 31 august 2002 to 31 august 2003. Some differences would show increase and some would show decrease in balances. For example if year 2002 balance is less and year 2003 balance is higher, an increase is shown. And if year 2002 balance is more and year 2003 balancea decrease will be shown.

TIP IS AS UNDER

- For assets all increases will be deducted and all decreases would be added.

- For liabilities all decreases will be added and all increases will be deducted.

THE NET FIGURE OF ALL THE ABOVE WILL BE THE NET CASH FLOW FIGURE.

hope you will be benefited from these solutions.

Regards,

Kamran.