Question

IMU
supplied by Rajan Gupta calculate cash flow from oper
5 from the information
activities
Cash Sales
Cash received from debtors
Commission received
Cash purchases
Cash paid to supplier of goods
Office expenses paid
Selling & Distribution Expenses
Insurance Premium paid
income tax paid
1,00.000
30.000
10,000
25,000
19,000
5,000
3,000
2,000
12,000​

Answer 1

Answer:

74,000

Explanation:

Cash sales : 1,00,000

+  Commission received : 10,000

= Revenue from operations : 1,10,000          (A)

Cash purchases : 25,000

+ Office expenses paid : 5,000

+ Selling & distribution expenses : 3,000

+ Insurance Premium paid : 2,000

= Total expenses : 35,000           (B)

Operating profit before working capital changes : 75,000           (A - B)

+ Cash received from debtors : 30,000

- Cash paid to supplier of goods : 19,000

= Operating profit after working capital changes : 86,000

- Income tax paid : 12,000

= Cash flow from operations :  74,000