Question

The net income reported on the income statement for the year was Rs.1,10,000 and depreciation of fixed assets for the year was Rs.44,000. The balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of the Year (Rs.) Beginning of the Year ( Rs.) Cash Debtors Inventories Prepaid Expenses Accounts Payable 1,30,000 2,00,000 2,90,000 15,000 1,02,000 1,40,000 1,80,000 3,00,000 16,000 1,16,000 Calculate total cash from operation activities.

Answer 1

Answer:

Explanation:

Cash from operating activities

Net income 1,10,000

Adjustment for non cash and Non operating Activities

Add Depreciation      44000

Operating profit before   154000

Current Assets:

Decreases in inventory 10000

Decrease in prepaid expenses 1000

Deduct :

Increase in Debtor 20000

Decrease in Account payable 14000

Operating Activities 131000