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Revenue and expense events involving cash are classified as operating activities.

Operating activities include cash activities related to net income. For example, cash generated from the sale of goods (revenue) and cash paid for merchandise (expense) are operating activities because revenues and expenses are included in net income Payment of interest is not included because interest expense appears on the income statement and is, therefore, included in operating activities. Cash payments to settle accounts payable, wages payable, and income taxes payable are not financing activities. These payments are included in the operating activities section Operating activities are the principal revenue-producing activities of the entity. Cash Flow from Operations typically includes the cash flows associated with sales, purchases, and other expenses. The company's chief financial officer (CFO) chooses between the direct and indirect presentation of operating cash flow Operating activities are the daily activities of a company involved in producing and selling its product, generating revenues, as well as general administrative and maintenance activities. The..

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Transactions must be segregated into the three types of activities presented on the statement of cash flows: operating, investing, and financing. Operating cash flows arise from the normal operations of producing income, such as cash receipts from revenue and cash disbursements to pay for expenses Therefore, cash flows arising from the purchase and sale of dealing or trading securities are classified as operating activities. In the same manner, cash advances and loans made by finance enterprises are usually classified as operating activities since they relate to the main revenue-producing activity of that enterprise

Three Types of Cash Flow Activities - GitHub Page

  1. ation of net income. Cash inflows from operating activities affect items that appear on the income statement and include: (1) cash receipts from sales of goods or services; (2) interest received from making.
  2. Hence, they are classified as non-operating expenses. Non-Cash Expenses. Under the accrual method of accounting, non-cash expenses are those expenses that are recorded in the income statement but do not involve an actual cash transaction. Depreciation is the most common type of non-cash expense, as it reduces net profit, but is not a result of.
  3. Depreciation expense is added to net income to calculate operating cash flows. Wi-Fi, Inc., reported a net income of $50,000 for the current year. The beginning and ending balances for Retained Earnings for the year are $100,000 and $130,000 respectively
  4. ation of net income, such as cash receipts from sales of goods and services and cash payments to suppliers and employees for acquisitions of inventory and expenses
  5. Non cash revenue accounts include accrued (or unrealized) revenues. Non cash expense accounts include depreciation expenses and bad debt expense. Transactions in these accounts do not involve payment or receipt of cash. Nevertheless, they ultimately decrease or increase owners equity on the Balance sheet
  6. Per GASB 9, paragraph 19, these program loans are classified as operating activities on the statement of cash flows. Therefore, it is appropriate for the agency to report transactions related to these program loans as part of their operating activities section on the statement of revenues, expenses and changes in net position
  7. The inflows of resources include program revenue, general revenue and others. GASB 34 requires inflows of resources reported on the government-wide financial statement to be classified as: Program revenue. Charges for services. Program-specific operating grants and contributions. Program-specific capital grants and contributions

Form 990 is an annual information return required to be filed with the IRS by most organizations exempt from income tax under section 501(a), and certain political organizations and nonexempt charitable trusts.Parts I through XII of the form must be completed by all filing organizations and require reporting on the organization's exempt and other activities, finances, governance, compliance. Operating activities: involve the cash effects of transactions that INCOME & CASH FLOW Expense Year 123Total Revenues 2,000 2,000 2,000 6,000 which are classified as operating cash flows, should be reclassified (using the after-tax numbers) as investing cash flows. This has the advantages of reporting operating cash flow The cash flows shown in the statement are grouped into three major categories: (1) operating activities. (2) investing activities, and (3) financing activities. We will now look briefly at the way cash flows are classified among these three categories. Operating Activities. The operating activities section shows the cash effects of revenue and expense transactions

The Statement of Cash Flows Financial Accountin

Operating activities also include your cash payments such as inventory, payroll, taxes, interest, utilities, and rent. The net amount of cash provided (or used) by operating activities is the key figure on a statement of cash flows Special Fund-Raising Events Revenues reported at gross unless event is incidental or peripheral Options for reporting expense direct costs Expense deduction from related revenue Separate line in expense section Gain reported if event is incidental or peripheral (expenses reported parenthetically Basically, the cash from operating activities includes the company's cash flows except for those reported as cash flows from 1) investing activities (buying and selling property, plant and equipment, buying and selling long-term investments), and 2) financing activities (borrowing and repaying short-term and long-ter begins with net income which is then adjusted to the cash provided by operating activities. operating activities activities involving net income. investing activities activities involving the purchase and sale of long-term assets. financing activities activities involving the borrowing and repayment of debt, long-term liabilitie Income Statement—Extraordinary and Unusual Items (Subtopic 225-20), Page 6. Accessed June 18, 2020. Accessed June 18, 2020. International Financial Reporting Standards

The company declared and paid cash dividends of $132,000 last year. The following questions pertain to the company's statement of cash flows. The net cash provided by (used in) financing activities last year was: A) $60,000 B) $(60,000) C) $192,000 D) $(192,000) Feedback: -$80,000 (decrease in bonds payable) + $20,000 (increase in common stock) -$132,000 (cash dividends) = -$192,000 (net cash. FASB ASC paragraph 840-20-25-2 indicates that contingent rental income in operating leases should not be recognized in a manner consistent with scheduled rent increases (i.e., on a straight-line basis over the lease term or another systematic and rational allocation basis if it is more representative of the time pattern in which the leased. Cash Flows From Operating Activities Add to Net Income A Deduct from Net Income D Cash Flows From Investing Activities IA Cash Flows From Financing Activities FA Category 1. Common stock is issued for cash at an amount above par value _____ 2. Inventory increased during the period _____ 3

Statement of Cash Flows - How to Prepare Cash Flow Statement

The Statement of Revenues, Expenses and Changes in Net Position is the Agency's income statement. Revenues earned and expenses incurred during the year are classified as either operating or nonoperating. All revenues and expenses are recognized as soon as the underlying event occurs, regardless of timing of the related cash flows Updated table to provide copies of asset equity table (AET)/income expense table (IET) to the taxpayer, if prepared, with L2844. 5.8.4.8(10) Updated to include a discussion with the group manager prior to completing a field call to view the taxpayer's assets. 5.8.4.8(12) Updated note to include discussion with group manager. 5.8.4.9(1 Revenue: Total revenue was $44.9 million, compared to $46.5 million in the fourth quarter of 2019. The expected decline in revenue was due to the ramping down of the U.S. Census contract during the fourth quarter of 2020. Gross Profit: Gross profit was $16.0 million, compared to $17.0 million in the fourth quarter of 2019 Classification of Activities for Cash Flow Statement. Cash flow activities majorly classified into three categories they are: Operating activities. Investment activities. Financing activities. These three activities help us to asses the financial position of a firm and also helps to know various cash and cash equivalent transactions incurred Operating activities. The company's principal revenue-producing activities, and other activities that are not investing or financing activities. Investing activities. Relate to the acquisition and disposal of long-term assets and other investments not included in cash equivalents. Financing activities

Operating Activities Definitio

  1. The ICAI's AS 3 'Cash Flow Statement' has classified cash flows into three categories: 1. Operating Activities (or Flows) ADVERTISEMENTS: 2. Investing Activities (or Flows) 3. Financing Activities (or Flows). Figure 18.1 displays the classification of cash inflows and cash outflows relating to operating activities, investing activities.
  2. Cash flows from operating activities represent the positive and negative cash flows from transactions involving the production and delivery of goods and services.For purpose of applying SFAS 95, operating activities are defined as all transactions and other events that are not classified as investing of financing activities
  3. e its per-unit profit margins
  4. Material items of income and expense. 23. where expenses are classified by nature, wages and salaries paid to employees involved in research and development (R&D) activities would be classified as employee benefits expense, Expenditure on unrecognised assets to be classified as operating cash flows. 2
  5. D. Purchase of treasury stock. E. Purchase of stock in another company. 2) When preparing the operating activities section of the statement of cash flows using the indirect method, expenses with no cash outflows are added back to net income. A. True----B. False 3) The purchase of stock in another company is classified as a financing activity
  6. Example 5: Operating Activities The company sold 500 units of merchandise at the price of $11,000. Customer paid $9,000 in cash at the time of sale. Analysis of Transaction Note: This transaction includes both REVENUE and EXPENSE components. (1) REVENUE sid

For example, the cash received from the sale of property, plant, and equipment at a gain, although reported in the income statement, is classified as an investing activity, and the effects of the related gain would not be included in the net cash flow from operating activities. Telos will host a conference call and live webcast to discuss its fourth quarter and full year 2020 financial results at 4:30 p.m. Eastern Time today, March 25, 2021. To access the conference call, dial (833) 540-1172 for the U.S. or Canada, or (409) 217-8402 for international calls and provide conference ID 5429529 The accounting remains different for expense attribution recognized as deposit liability until collectibility becomes probable or specified events occur. — Operating lease income limited to lease payments received when collectibility is or extinguishment costs should be classified as cash outflows for financing activities. Settlement. Revenue, expenses and liabilities are an important concept in current accounting practices. Al-muhasabah, is a process involving recording activities, classifying, analyzing operating revenue and non-business operating revenue. Business operating

Cash Flows from Operating Activities Section is only one affected by requirement to use the direct method -reconciliation of operating income to cash flows from Cash #12 Operating expenses Operating Expenses Vouchers Payable Cash 50,000 20,000 139,200 70,000 70,000 209,20 governmental fund does not use expenses Records revenue at the amount government Most accounts are for current operating Cash Revenues 205,000 205,000 #21 Ordering goods & services [Page 81] No journal entry required until goods or services are received The non-operating section includes revenues and gains from non-primary business activities, items that are either unusual or infrequent, finance costs like interest expense, and income tax expense. The bottom line of an income statement is the net income that is calculated after subtracting the expenses from revenue

If an event or circumstance occurs that discharges an entity's responsibility to settle a liability for a cost associated with an exit or disposal activity recognized in a prior period, the liability is reversed through the same expense line item in the income statement as when originally recognized Financial statements are written records of a business's financial situation. They include standard reports like the balance sheet, income or profit and loss statements, and cash flow statement b. Cash flows from operating activities are primarily derived from the principal revenue- producing activities of the entity. c. Cash flows from investing activities include the cash effect of transactions involving long-lived assets, for example, cash outflow (inflow) from purchase (sale) of equipment. d

Video: Differentiate between Operating, Investing, and Financing

The statement of cash flows is prepared by following these steps:. Step 1: Determine Net Cash Flows from Operating Activities. Using the indirect method, operating net cash flow is calculated as follows:. Begin with net income from the income statement. Add back noncash expenses, such as depreciation, amortization, and depletion P.L. 115-97, Tax Cuts and Jobs Act, changed the rules for the deduction of food or beverage expenses that are excludable from employee income as a de minimis fringe benefit. For amounts incurred or paid after 2017, the 50% limit on deductions for food or beverage expenses also applies to food or beverage expenses excludable from employee income. (1). Presentation of operating activities section: Cash of $500,000 was paid at the time of acquisition of patents. No cash payment is made when amortization is recorded. Amortization on patents is a non-cash expense and must be added back to net operating income in the operating activities section. Its presentation is given below: * $500,000/5. 97 Prepare the Statement of Cash Flows Using the Indirect Method . The statement of cash flows is prepared by following these steps:. Step 1: Determine Net Cash Flows from Operating Activities. Using the indirect method, operating net cash flow is calculated as follows:. Begin with net income from the income statement. Add back noncash expenses, such as depreciation, amortization, and depletion

Cash Flow Statement: Concept, Classification and Significanc

Gross margin with operating expenses subtracted. Income Statement Summary of the effect of REVENUES and expenses over a period of time. Income Summary A temporary account used during the closing process that holds a summary of all REVENUES and EXPENSES before the NET INCOME or loss is transferred to the capital account The gain (computed as proceeds minus the book value) appeared on the income statement and increased the company's net income. However, the entire proceeds from the sale of a company's assets are shown in the investing section. In order to avoid double-counting the gain, the gain must be subtracted from the net income amount appearing in the operating activities section of the statement of cash. Cash Flows from Operating Activities: Net Income $ 5,378 $ 4,287 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization expense: 4,174 4,150 Employee retirement benefits (253) (1) Deferred income taxes: 762 (87) Provision for expected credit losses: 224 55

Special event expense, net — 311,313 Net cash provided by operating activities 24,549,579 18,879,869 Net assets, support and revenue, expenses, gains, and losses are classified based on the existence or absence of donor-imposed restrictions in accordance with Accounting Standards Codificatio Adjustments for changes in current assets and liabilities that identifies the source of non-cash income and expenses. Indirect method is more focus on the difference between net income and net cash flow from operating activities. That is its main advantage. And it provides a useful bond between net income and income statement and balance sheet

Operating activities Excess of revenue over expenses for the year 4,257,451 2,789,409 Add (deduct) items not involving cash Reinvested investment income (2,520,485) (2,396,972) Amortization of capital assets 600,359 516,165 2,337,325 908,602 Changes in non-cash working capital balances related to operations Decrease in accounts receivable. Adjustments to reconcile net income to net cash from operating activities: Depreciation and amortization of property and equipment and capitalized content costs, operating lease assets, and other: 5,362 7,508 22,297 27,397 Stock-based compensation: 1,757 2,306 7,347 9,757 Other operating expense (income), net: 67 30 244 (108

4) On a statement of cash flows prepared using the indirect method, an increase in Accounts Payable during the period is: a. added to net income to determine net cash provided by operating activities b. deducted from net income to determine net cash provided by operating activities c. added to net income to determine net cash provided by. Earnings management is the acceleration or deferral of expenses or revenue through operating or accounting practices with the objective to produce consistent growth in earnings. Merger and acquisition activities. One type of significant event that may be used to mask other charge-off is mergers and acquisitions. 3Com agreed in November. Determining Operating/Nonoperating Revenues/Expenses in Proprietary Funds: 1.5: A new section was added with a guidance regarding classification of revenues/expenses as operating or nonoperating. This section is applicable only to proprietary GAAP funds. It contains a discussion and a spreadsheet showing the BARS classification What was Jamie's net cash provided by operating activities? (TCO A) In a classified balance sheet, assets are usually classified as: Revenue earned 87,500 Cash paid for expenses 42,500 Expenses incurred 50,000. Jake's Market recorded the following events involving a recent purchase of merchandise: Received goods for $20,000, terms 2. Cash flows from operating activities to net cash from operating activities Income and expenses not involving cash flows: Depreciation of a marketing campaign, photos at a fundraising event, donations of rent and donations of leased cars. Revenue recognitio

Operating activities . Net loss $ (62,948) $ (168,853) Items not involving cash: Stock based compensation expense -49,200 (62,948) (119,653) Change in non-cash operating working capital . 2007 and is classified as a Capital Pool Company as defined in Policy 2.4 of the TSX Venture Exchange Inc (TSXV or the Exchange). The Corporation. OPERATING ACTIVITIES. Net Loss $ (1,232) (5,269) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization. 4,710. 4,829. Impairment of goodwill. Step 2 involves comparing what the Farmers received with what they gave in the deal. They received a $50,000 tractor and they gave a $5,000 tractor and $46,000 cash. The result is a $1,000 loss. Step 2: New asset received - book value of asset given up - cash paid = $50,000 - 5,000 - 46,000 = -$1,000 loss Adjusted EBITDA in Q3 F2021 was $7.7 million, or 25% of revenue, up from $6.1 million, or 23% of revenue, in Q3 F2020. Cash generated from operating activities in Q3 F2021 was $7.3 million, compared to $3.7 million in Q3 F2020 Net cash flows provided by operating activities $ 260.8 $ 311.7 Net cash flows used in operating activities - discontinued operations (6.9) (70.9) Capital expenditures (15.2) (13.9) Capitalized.

Financial Statements Introduction to Busines

Cash flows from operating activities: Net (loss) income $ (32,468) $ 3,211 Items not involving cash: Depreciation and amortization 6,729 2,516 Change in fair value of biological assets 415 (513) Change in fair value of warrant liabilities (13,082) — Change in fair value of stock appreciation rights (275) Accounting for Purchases. Purchase is the cost of buying inventory during a period for the purpose of sale in the ordinary course of the business. It is therefore a kind of expense and is hence included in the income statement within the cost of goods sold. Purchases may include buying of raw materials in the case of a manufacturing concern or. What is an Expense? An expense is the reduction in value of an asset as it is used to generate revenue.If the underlying asset is to be used over a long period of time, the expense takes the form of depreciation, and is charged ratably over the useful life of the asset. If the expense is for an immediately consumed item, such as a salary, then it is usually charged to expense as incurred Telos will host a conference call and live webcast to discuss its fourth quarter and full year 2020 financial results at 4:30 p.m. Eastern Time today, March 25, 2021. To access the conference call. Revenue and Expense In June 2020, the GASB issued a Preliminary Views proposal in its project to develop a comprehensive model for recognizing expenses and revenues. Learn more about the project and how to share your views. Feature Pane - Revenue and Expense - More Lin

Since revenues ($85,000) are greater than expenses ($79,200), Cheesy Chuck's has a net income of $5,800 for the month of June. Figure 2.7 displays the June income statement for Cheesy Chuck's Classic Corn Cost per available seat mile excluding fuel and non-airline operating expense (cents) (1) 6.50. 6.60. 6.22. 6.43. Three Months Ended December 31, Twelve Months Ended December 31, 2019. 2018. 2019. 2018. Reconciliation of airline operating revenue, operating income, net income, and EBITDA (millions, unless otherwise noted) Operating revenue as.

Accounts Expenses - Definition, Accounting Treatment, Type

Accounting Chapter 11 Videos: Flashcards Quizle

Exxon Mobil Corporation today announced estimated 2018 earnings of $20.8 billion, or $4.88 per share assuming dilution, compared with $19.7 billion a year earlier. Excluding U.S. tax reform and asset impairments, earnings were $21 billion, compared with $15.3 billion in 2017 The statement of cash flows prepared using the indirect method adjusts net income for the changes in balance sheet accounts to calculate the cash from operating activities. In other words, changes in asset and liability accounts that affect cash balances throughout the year are added to or subtracted from net income at the end of the period to. Cash provided from (used in): Operating: Excess of revenue over expenses $ 12,518 $ 13,016 . Items not involving cash: Gain on sale of investments (124) (65) Amortization 1 3 . Change in fair value of assets 502 832 . Increase of other assets (151) (190) Changes in non-cash operating working capital Financing activities are transactions involving long-term liabilities, owner's equity and changes to short-term borrowings. These activities involve the flow of cash and cash equivalents between the company and its sources of finance i.e. the investors and creditors for non-trading liabilities such as long-term loans, bonds payable etc

Cash from operations in the fourth quarter of 2017 was $1 .5 billion, compared to $729 million in the fourth quarter of 2016. Net sales in 2017 were $51 .0 billion, compared to $47 .2 billion in 2016. Net earnings from continuing operations in 2017 were $1 .9 billion, or $6.64 per share, compared to $3 .8 billion, or $12.38 per share, in 2016 Operating income is Earnings Before Interest and Taxes (EBIT). It is the realized profit from operations after deducting operating expenses (cost of goods sold (COGS), depreciation, amortization, and wages). EBIT is described as revenues minus expenses. Operating income may be found by calculating the gross income, and. Gross Income = Revenue. Cash flows from operating activities Profit before tax 7,583 6,659 Adjustments for non-cash and other items: Allowances for credit and other losses 703 710 Depreciation of properties and other fixed assets 609 331 Share of profits or losses of associates (50) (29) Net loss/ (gain) on disposal, net of write-off of properties and other fixed. Other operating income 7 24,637 30,016 3,138,711 2,947,410 EXPENSES: Cash provided by operating activities 1,427,643 1,469,793 CASH FLOWS FROM INVESTING ACTIVITIES: these estimates are based on management's best knowledge of current events and action, actual results could differ from those estimates. The areas involving a highe Advertising Cost. Disclosure of accounting policy for capitalizing direct response advertising costs, including a description of the qualifying activity and the types of costs capitalized, and the manner in which capitalized costs are recognized as expense and the basis for the timing thereof. The following amounts may also be disclosed: (1) total advertising costs reported as assets in each.

Operating, Investing and Financing Activities

Non-Cash Expenses, Revenues, and Account

In-kind service revenue and expenses recorded on the statements of activities consist of contributed legal services and internet hosting. The amounts of specialized contributed legal services and other consulting services recognized as revenue and expenses are $32,691 and $95,101 for the years ended June 30, 2013 and 2012, respectively Operating Activities Net income $ 14,264 $ 22,224 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 8,172 9,326 Slow moving inventory valuation adjustment 360 615 Stock-based compensation 1,144 686 Loss on sale of assets - 31 Deferred income taxes (744) 93

103The second form of analysis is the 'function of expense' or 'cost of sales' method and classifies expenses according to their function as part of cost of sales or, for example, the costs of distribution or administrative activities.At a minimum, an entity discloses its cost of sales under this method separately from other expenses. This method can provide more relevant information. Changes in operating liabilities 36.1 168,348 Note 2010 2009 (restated) OPERATING ACTIVITIES FINANCING ACTIVITIES Income before taxes 56,945 106,889 Adjustments for non-cash items, interest and dividends 36.1 (13,736) 38,576 Interest and dividends received 244,164 246,714 Interest paid (95,283) (113,345

A financial plan serving as an estimate of and control over future operations. The budget is a projected work program which involves units of service, revenue and expense (operating), cash flow, and capital expenditures. Budget Year (BY) Fiscal period, usually 12 months, for anticipated expenses and revenues. Capital Asse Reconciliation of net loss to EBITDA excluding non-cash items and a reconciliation of cash used in operating activities to Free Cash Flow: Net loss (15,743) (25,096) Interest expense, net (1. A. Introduction. 1. The Canada Revenue Agency (CRA) recognizes that registered charities in Canada often depend on donations to carry out their charitable activities, and that appropriate fundraising activities are often necessary for the sustainability of the charitable sector.For many charities, this means that a portion of their resources (including time, property, and money) will be used. Cash flows from operating activities can be reported using either the direct method or the indirect method (refer to paragraphs PS 1201.112-.113 for more guidance). When a government uses the indirect method and there is a significant difference between interest revenue or expense recognized in the Statement of Operations and the interest. Chicago, Illinois. We have audited the general purpose financial statements of the Million Man March 1995, Inc. (and Illinois not-for-profit corporation) for the year ending December 31, 1995, and have issued our report thereon dated May 31, 1996. We conducted our audit in accordance wit generally accepted auditing standards

Accounting information is the information that arises from business transactions. Once identified, the information is then classified and recorded, and it eventually finds its way into various reports. For cash-basis accounting, this is relatively simple. Revenue is recorded in the books when cash is received, and expenses are recorded when. The event was classified as an outbreak under the criteria followed by the local health unit. Net cash provided by operating activities in YTD 2021 totalled $538.7 million, a 16% increase from. CDK Global, Inc. Consolidated Statements of Cash Flows(In millions)(Unaudited) Nine Months Ended March 31, 2021 2020Cash Flows from Operating Activities: Net earnings$991.0 $167.7 Less: net. Cash flows from operating activities: Net income $ 367 $ 441 : Adjustments for non-cash income and expenses. 316 : 150 : Changes in assets and liabilities (186) (322) Net cash provided by operating activities. 497 : 269 : Cash flows from investing activities: Purchases of property and equipment (112) (106) Net (purchases) sales of investments.

Logan Corp.'s trial balance of income statement accounts for the year ended December 31, 2012 included the following: Debit Credit Sales revenue $280,000 Cost of good sold $100,000 Administrative. Revenue test - Section 509(a)(2) For an organization that doesn't meet either the one-third or 10% support tests based on contributions but that receives revenue from fees or sales related to its exempt mission activities, a revenue-based support test under Section 509(a)(2 may apply.. If the sum of contributions, membership fees, and revenue from exempt activities is at least one-third of. Includes $7.5 billion of goodwill and asset impairment charges related to Phone Hardware, and $2.5 billion of integration and restructuring expenses, primarily costs associated with our restructuring plans, which decreased fiscal year 2015 operating income and net income by $10.0 billion and diluted earnings per share (EPS) by $1.15

Net cash provided by operating activities 10 85,163 1,567,278 Cash flows from investing activities Payment for property, plant and equipment (111,998) (219,600) Net cash used in investing activities (111,998) (219,600) Cash flows from financing activities Payments to members (4,000) - Cash flows generated from/(utilised in) operating activities Operating profit for the financial year 9,826,780 7,529,749 Adjustments to operating profit: Interest and similar income 3 (80,814,344) (77,434,594) Interest and similar expenses 3 67,684,751 66,050,19 Cash flows from operating activities Net (loss) $ (3,835 ) $ (4,126 ) Adjustments required to reflect net cash used in operating activities: Income and expenses not involving cash flows: Depreciation 114 95 Non-cash operating lease expenses 66 67 Share-based compensation 320 64 Adjusted operating profit reduced to £3.7m (2019: £6.2m). This includes: · gross profit materially similar to the prior year that reflects the increase in revenue but at a lower gross profit percentage for reasons noted above; · an increase in operating expenses of c.£0.7m in support of growth initiatives including the opening of in-country operations in France and the investment in.