17. (Cash Flow from Operating Activities) From the following information, calculate cash from operating activities : Profit and Loss on 1st April, 2017 (Credit) Profit and Loss on 31st March, 2018 (Credit) Prepaid expenses on 1st April, 2017 Outstanding expenses on 1st April, 2017 Outstanding expenses on 31st March, 2018 Depreciation on fixed assets Amortisation of goodwill Decrease in Bills Payable Decrease in Debtors Loss on sale of machine Provision for taxation Transfer to General Reserve [Ans. Net Cash from operating activities 2,94,200).
Answers
Answer:
Net profit before tax :-
profit & loss as on 31.3.2018
(-) profit &loss balance as on 1.4.2017
(+) Transfer to General reserve
(+) provision for taxation
Cash flow from operating activity
Net profit before tax (calculated above,)
(+) depreciation
(+) amortization of goodwill
(+) loss on sale of machine
operating profit before working capital changes
(+)decrease in debtors
(-) decrease in bills payable
(+) increase in outstanding expenses
(-) decrease in outstanding expenses
Explanation:
As you are not mention the amount of all these items
please fill the amount and got the answer
as outstanding expenses balance of two years are given
so treatment is if outstanding expenses increase from last year then it is added
if outstanding expenses are decrease from last year then it is subtracted