Question

Prepare a format for cash flow from operating activities.

Answer 1

The format of cash flow from operating activities under the indirect method is as follows:

Indirect Method
Particulars	Amount (Rs.)
Net Profit/Loss before Tax and Extraordinary Items
+ Deductions already made in Statement of Profit and Loss on account of Non-cash items such as Depreciation, Goodwill to be Written-off	xxx
+ Deductions already made in Statement of Profit and Loss on Account of Non-operating items such as Interest.	xxx
− Additions (incomes) made in Statement of Profit and Loss on Account of Non-operating items such as Dividend received, Profit on sale of Fixed Assets.	xxx
Operating Profit before Working Capital changes	xxx
Add: in case of increase in current assets (other than cash and cash equivalent) and decrease in current liabilities.	xxx
Less: in case of decrease in current assets (other than cash and cash equivalent) and decrease in current liabilities.	xxx
Cash Flows from Operating Activities before Tax and Extraordinary Items	xxx
− Income Tax Paid	xxx
+/− Effects of Extraordinary Items	xxx
Net Cash from Operating Activities	xxx