Question

From the following statement, calculate Cash from Operating Activities:

STATEMENT OF PROFIT AND LOSS for the year ending 31st March, 2018.
Particulars	Note No.	Amount (₹)
Revenue from operations		1,00,000
Other Income	1	10,000
Total Revenue		1,10,000
Expenses:
Employee Benefit Expenses		10,000
Depreciation and Amortization Expenses	2	28,000
Finance Cost (Interest on Debentures)		5,000
Other Expenses	3	12,000
Total Expenses		55,000
Profit before Tax		55,000
Less: Provision for Tax		(27,000)
Profit after Tax		28,000

Notes to Accounts:

Particulars	Amount (₹)
1. Other Income
Gain on sale of Land and Building	6,000
Interest on investments (including interest accrued ₹ 1,000)	4,000
	10,000
2. Depreciation and Amortization Expenses:
Depreciation on Land and Building	18,000
Amortization of Patents	10,000
	28,000
3. Other Expenses
Commission (including outstanding commission ₹ 5,000)	6,000
Carriage inward	6,000
	12,000

Additional Information:

1. During the year 2017-18, tax paid was ₹ 25,000.
2. Proposed Dividend for the year ended 31^st March, 2018 was ₹ 15,000.

Answer 1

CASH FLOW FROM OPERATING ACTIVITIES for the year ended 31st March, 2018
Particulars	Amount (₹)	Amount (₹)
Net Profit before Tax		55,000
Adjustment for Non-Cash and Non-Operating Items:
Add:
Depreciation on Land and Building	18,000
Amortisation of Patents	10,000
Interest on Debentures	5,000	33,000
		88,000
Less:
Gain on sale of Land and Building	(6,000)
Interest on Investments	(4,000)	(10,000)
Operating Profit before Working Capital Changes		78,000
Add: Increase in Current Liabilities
Outstanding Commission		5,000
		83,000
Less: Increase in Current Assets
Interest Accrued		(1,000)
Cash Generated from Operating Activities		82,000
Less: Tax Paid		25,000
Net Cash Flow from Operating Activities		57,000