on the move, page-24

re: on the move - cashflow sensis,

when I dig a bit deeper into the Notes to Financial statements at note 12 to the Statement of Cash Flows (p. 16 of the Preliminary Financial Report for FY ended 30 Sept 2004) it provides a breakdown of net cashflows (2003 and 2004).

Basically the stateemtn of cashflows should not be confused with profit (it simply shows sources and uses of funds by the company-i.e. how it chose to use its profits)

It seems that a substantial contributor to the fall in net operating cashflows for the FY ending 30 Sept 2004 was
(1) an increase in receivables, including loan receivables $8.982m in FY 2003 to $24.482m in FY 2004 (an increase in assets)

(2) an increase in inventories of $10.467m in FY 2004 as opposed to a decrease in assets in FY 2003

Timbercorp accounts may be a little different from manufacturing companies in that an increase in loan receivables is considered to be an operating activity. Something about securitising loans as part of their operations.

Ajax