Question

From the following Balance Sheet of Dreams Converge Ltd. as at 31st March, 2018 and
31st March, 2017, calculate Cash from Operating Activities. Show your working clearly.
Particulars
Note 31st March, 31st March,
No. 2018) 2017 )
7,00,000
3,50,000
5,00,000
2,00,000
1. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital
(6) Reserves and Surplus
2. Non-Current Liabilities
Long-term Borrowings
3. Current Liabilities
(a) Trade Payables
lb) Short-term Provisions (Provision for Tax)
50,000
1,00,000
1,05,000
1,22,000
50.000
30,000
Total
12,72,000
9,35,000
1
2
II. ASSETS
1, Non-Current Assets
fa) Fixed Assets:
(1) Tangible Assets
GT) Intangible Assets
(b) Non-current Investments
2. Current Assets
(a) Inventory
(6) Trade Receivables
(c) Cash and Cash Equivalents
5,00,000
95,000
1,00,000
5.00000
1,00,000
NIL
1,30,000
1,47,000
3,00,000
55.000
80,000
200,000
Total
12,72.000
9,35,000
Note Account​

Answer 1

Answer:

Cash from Financing Activities

Financing activities relate to long-term funds or capital of an enterprise, e.g., cash proceeds from issue of equity shares, debentures, raising long-term bank loans, repayment of bank loan, etc.

Cash Inflows from financing activities

Cash proceeds from issuing shares (equity or/and preference)

Cash proceeds from issuing debentures, loans, bonds and other short/ long-term borrowings.

Cash Outflows from financing activities

Cash repayments of amounts borrowed.

Interest paid on debentures and long-term loans and advances.

Dividends paid on equity and preference capital.

Example 1:

From the following information, calculate cash flow from operating activities using direct method.