Advertisements
Advertisements
Question
Calculate ‘Cash from operating activities’ from the following:
| 31.3.2023 (₹) |
31.3.2024 (₹) |
|
| Profit and Loss Balance | 2,00,000 | 3,00,000 |
| Trade Receivable | 1,40,000 | 1,80,000 |
| Provision for Depreciation | 3,00,000 | 3,20,000 |
| Outstanding Rent Payable | 16,000 | 40,000 |
| Prepaid Insurance | 14,000 | 12,000 |
| Goodwill | 2,00,000 | 1,60,000 |
| Inventories | 1,40,000 | 1,80,000 |
Ledger
Advertisements
Solution
| Cash Flow from Operating Activities for the year ending 31st March, 2024. |
||
| Particulars | Amount (₹) | |
| Profit for the year (3,00,000 − 2,00,000) | 1,00,000 | |
| Adjustments for non-cash and non-operating items: | ||
| Add: |
||
| Provision for Depreciation (3,20,000 − 3,00,000) | 20,000 | |
| Goodwill written off (2,00,000 − 1,60,000) | 40,000 | 60,000 |
| Operating Profit before Working Capital Changes | 1,60,000 | |
| Less: Increase in Current Assets: | ||
| Trade Receivables (1,80,000 − 1,40,000) | (40,000) | |
| Inventories (1,80,000 − 1,40,000) | (40,000) | (80,000) |
| Add: | ||
| Increase in Current Liabilities: | ||
| Outstanding Rent Payable (40,000 − 16,000) | 24,000 | |
| Add: | ||
| Decrease in Current Assets: | ||
| Prepaid Insurance (12,000 − 14,000) | 2,000 | 26,000 |
| Net Cash from Operating Activities | 1,06,000 | |
shaalaa.com
Is there an error in this question or solution?
