I have problems with cash flow statements.

I have tried to prepare a cash flow statement, and the figures I need to balance is for 2005.

Questions:

1. Why under cash flow from financing activties the interest paid is deducted, and the same amound of interest paid is added in cash flow from operating activties?

2. For (Increase)/ decrease in amount owing by related companies, does this figure means

Minus purchases from related companies
Add sales to related companies
Add management fee received from related companies

3. For Increase/ (decrease) in amount owing to subsidiary companies, do I

Add sales to related companies
Add management fee received from related companies

4. How do we find from the footnotes on "settlement of fiance lease"?

5. For the financial lease taken, does this figures come from operating leases which expire within 1 year?

1. Why under cash flow from financing activties the interest paid is deducted, and the same amound of interest paid is added in cash flow from operating activties?

The profit with which we start the calculation for cashflow from operating activities, is arrived at after deducting interest. Hence interest paid is added back to arrive at PBI. And subsequently it is deducted from financing activities as a cash outflow.

I didnt understand questions 2 and 3

4. How do we find from the footnotes on "settlement of fiance lease"?

Notes explain the thing.