Panelis is preparing year 1 of the value in use projections for an insulating panel production line. It expects 900,000 of receipts from the line's future sales, 520,000 of payments for materials and staff, 60,000 of overheads allocated to the line using a reasonable key and 40,000 of day-to-day servicing. Its cash forecast also contains the collection of 75,000 of trade receivables and the payment of 45,000 of trade payables, both recognised in the statement of financial position at the test date. What net cash flow should be used for year 1?
- Receipts from future sales
- 900,000
- Payments for materials and staff
- 520,000
- Allocated overheads
- 60,000
- Day-to-day servicing
- 40,000
- Existing trade receivables
- 75,000
- Trade payables already recognised
- 45,000