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Calculate Cash Flow from Operating Activities from the Following Information. - Accountancy

Numerical

Calculate Cash Flow from Operating Activities from the following information.

Particular

31st March

2017

(Rs)

Net Profit (Difference between Closing and Opening Balance of Surplus, i.e., Balance in Statement of Profit and Loss)

8,00,000

Final Dividend paid in the year 1,10,000
Compensation for Natural Disaster credited to Statement of Profit and Loss 75,000
Depreciation 1,50,000
Loss on Sale of Investment 30,000
Gain (Profit) on Sale of Land 90,000
Provision for Tax 1,10,000
Dividend Received 20,000
Decrease in Current Assets (Other than Cash and Cash Equivalents) 40,000
Increase in Current Liablilities 70,000
Decrease in Current Liabilities 10,000
Increase in Current Assets (Other than Cash and Cash Equivalents) 60,000
Income Tax Refund 10,000
Income Tax Paid

1,20,000

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Solution

Cash Flow from Operating Activities

 

Particulars

Amount

(Rs)

Amount

(Rs)

 

Profit as per Statement of Profit and Loss

 

8,00,000

 

Add: Provision for Tax

 

1,10,000

  Add: Proposed Dividend
Less: Income Tax Refund
Less: Compensation for Natural Disaster
  1,10,000
  (10,000)
  (75,000)

 

 

 

 

 

Profit Before Tax and Extraordinary items

 

 9,35,000

 

Items to be Added:

 

 

 

Depreciation on Plant and Machinery

1,50,000

 

 

Loss on sale of Investment

30,000

 1,80,000

 

 

 

11,15,000

 

Items to be Deducted:

 

 

 

Profit on Sale of Land

(90,000)

 

 

Dividend Received

(20,000)

(1,10,000)

 

Operating Profit before Working Capital Adjustments

 

10,05,000

 

Add: Increase in Current Liabilities

70,000

 

 

Add:Decrease in Current Assets

40,000

  1,10,000

 

 

 

11,15,000

 

Less: Decrease in Current Liabilities

(10,000)

 

 

Less: Increase in Current Assets

(60,000)

  (70,000)

 

Cash Generated from Operations

 

10,45,000

  Less: Tax Paid   (1,20,000)
  Cash Flow from operations after Tax        9,25,000

 

Add: Compensation for Natural Disaster
Add: Income Tax Refund
 

 

  75,000
  10,000
 

 

Net Cash Flows from Operating Activities

 

10,10,000

Concept: Ascertainment of Cash Flow from Investing and Financing Activities
  Is there an error in this question or solution?
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APPEARS IN

TS Grewal Class 12 Accountancy - Analysis of Financial Statements
Chapter 4 Cash Flow Statement
Exercise | Q 15 | Page 94
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