Question

If manufacturing expenses are Rs. 20000, interest expenses Rs 4000. Cash sales is Rs 30000, Increase in inventory and debtors is Rs 5000 and Rs 7000 respectively. While increase in accounts payble is 9000. Calculate the cash flow from operations?
a) Rs 3000
b) Rs 9000
c) Rs 7000
d) Rs 12000

Answer 1

Answer:

the correct answer is (a)

Answer 2

$\fontsize{18}{10}{\textup{\textbf{Correct option is (a) 3000.}}}$

Explanation:

From the Given Information we have to calculate the cash flow from operations.

Cash flow

= cash sales + increase in accounts payable - manufacturing expense -interest expenses - increase in inventory - increase in debtors.

Therefore, cash flow is given by

$30,000+9000-20,000-4000-5000-7000\\\\=3000.$

Thus, required cash flow from operations is Rs 3000.

Option (a) is CORRECT.

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Question : Explain the procedure of calculating cash flow from operating activities​.

Link : https://brainly.in/question/9682239.