Question

If credit purchase are rs. 2000000 and cash purchase are 25% of total purchase. Find out the cash ow from operating activities

Answer 1

Explanation:

If total purchase is 100%

Then Cash purchase is 25%

Therefore, Credit Purchase will be 75%

Now,

When Credit Purchase is 75% - 200000

Then if Cash Purchase is 25% - ?

=

$25 \times 200000 \div 75$

Answer 2

The cash flow from operating activities is Rs 666,667

Explanation:

Given that

Credit purchase = Rs. 2,000,000    

Cash purchase = 25%

So, the credit purchase = 75%

As the total purchase = cash purchase + credit purchase

          100%                  = 25% + 75%      

We have to applied the unitary method to find out the cash purchase that equal to

= 2,000,000 × 25% ÷ 75%

= Rs 666,667

And, the same is come under the cash flow from operating activities i.e Rs. 666,667

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