Reconciliation of Operating Profit to Net Cash Flow
Accounting · 6th Year · Cash Flow Statements · 3o Periodo

Reconciliation of Operating Profit to Net Cash Flow

Learn how to adjust operating profit for non-cash items and working capital changes to find the net cash flow from operating activities.

NCCA Curriculum SpecificationsNCCA Leaving Certificate Accounting: Section 1 Financial Accounting;Prepare the reconciliation of operating profit to net cash inflow from operating activities.

About This Topic

Learn how to adjust operating profit for non-cash items and working capital changes to find the net cash flow from operating activities.

Key Questions

  1. How do depreciation and profit or loss on the disposal of assets affect operating profit?
  2. Why do an increase in stock and a decrease in creditors negatively impact cash flow?
  3. How do we calculate the exact cash generated from daily business operations?

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