Question

the net profit before taxes as per profit and loss account, of gamma Ltd is Rs 269244.with the given set of information, classfy the given items as ( operating/investing/financing) share the correct classification with logical reasoning and calculate the cash flow from operating activities​

Answer 1

Answer:

so that is the correct answer

Answer 2

Cash Flow Statement consist of three type of activities:

1.Operating Activities

2.Investing Activities

3.Financing Activities

here you asked about operating activity:

These are the principle revenue producing activities of enterprise.

A) Cash flow from operating activities

    Cash sales                                              405000

+   Payment received from debtors               2500

-   cash purchases                                        320000

-   payment made to creditors

-   payment made to operating expenses   3700

= cash generated from operations             83800

-  tax paid                                                        2000

+/- Extraordinary items                                      -

   Cash flow from operating activities         81800