Tesco 2005 Annual Report Download - page 64

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62 Tesco PLC
Notes to the financial statements continued
Note 32 Reconciliation of operating profit to net cash inflow from operating activities
2005 2004
£m £m
Operating profit 1,949 1,735
Depreciation and goodwill amortisation 795 752
Additional pension contribution (200) –
Increase in goods held for resale (67) (92)
Decrease in development property –15
(Increase)/decrease in debtors (48) 17
Increase in trade creditors 337 261
Increase in other creditors 238 254
Decrease in working capital (a) 460 455
Net cash inflow from operating activities (b) 3,004 2,942
(a) The decrease in working capital includes the impact of translating foreign currency working capital movements
at average exchange rates rather than year end exchange rates.
(b) The subsidiaries acquired during the year have not had a significant impact on Group operating cash flows.
Note 33 Analysis of changes in net debt
At 28 Feb Other non- Exchange At 26 Feb
2004 Cash flow cash changes Acquisitions movements 2005
£m £m £m £m £m £m
Cash at bank and in hand 670 121 – – 9 800
Liquid resources (a) 430 (97) – – 13 346
Bank and other loans (775) 348 (14) (15) (15) (471)
Finance leases (69) 63–––(6)
Debt due within one year (844) 411 (14) (15) (15) (477)
Bank and other loans (4,180) (330) (19) (2) 45 (4,486)
Finance leases (166) 157 (16) – – (25)
Debt due after one year (4,346) (173) (35) (2) 45 (4,511)
(4,090) 262 (49) (17) 52 (3,842)
(a) Liquid resources comprises short-term deposits with banks and money-market investments which mature within 12 months of the date of inception.