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प्रश्न
Charles Ltd. earned a profit of ₹ 1,00,000 after charging depreciation of 20,000 on assets and a transfer to General Reserve of ₹ 30,000. Goodwill amortised was ₹ 7,000, and gain on sale of machinery was ₹ 3,000. Other information available is (changes in the value of Current Assets and Current Liabilities): trade receivables showed an increase of ₹ 3,000; trade payables an increase of ₹ 6,000; Prepaid expenses an increase of ₹ 200; and outstanding expenses a decrease of ₹ 2,000.
Ascertain Cash Flow from Operating Activities.
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उत्तर
| Cash Flow Statement | ||
| Particulars | Amount (₹) | Amount (₹) |
| Net Profit before Taxation | 1,30,000 | |
| Adjustment for Non-Cash and Non-operating Items: | ||
| Add: Depreciation | 20,000 | |
| Add: Goodwill amortised | 7,000 | |
| Less: Gain on sale of machinery | 3,000 | 24,000 |
| Operating profit before working capital | 1,54,000 | |
| Adjustment for working capital charges: | ||
| Less: Increase in Trade receivables | 3,000 | |
| Add: Increase in Trade payables | 6,000 | |
| Less: Increase in Prepaid expenses | 200 | |
| Less: Decrease in Outstanding expenses. | 2000 | 800 |
| Net Cash from Operating Activities | 1,54,800 | |
Working Note:
Calculation of Net Profit before Taxation and Extraordinary Items:
Net Profit = Profit + Transfer to General reserve
= ₹ 1,00,000 + ₹ 30,000
= ₹ 1,30,000
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