Question

please give answer....​

Answer 1

Explanation:

net profit 6000

add: non cash items Dr

to p&l acc

1. transfer to gen reserve 40,000

2 pre exp write off. 10,000

3.transfer to reserves. 6000

__________

operating profit before w.c changes= 62000

add: decrease prep exp. 2500

decrease trade pay. 8000

decrease outstanding ex 4000

____________

76500

less: increase trade rec 32000

net cash flow from operating activities=

44500 answer...