X Ltd. Earned a profit of Rs. 5,00,000 after charging depreciation of Rs. 1,00,000 and a
transfer to General Reserve of Rs. 1,50,000. Goodwill amortised was Rs. 35,000 and gain
on sale of Machinery was Rs. 15,000.
At the end of the year, the following changes were observed in current assets and current
liabilities :-
i) Increase in debtors Rs. 30,000
ii) Increase in creditors Rs. 50,000
iii) Increase in prepaid expenses Rs. 1,000
iv) Decrease in bills receivables Rs. 15,000
v) Decrease in bills payables Rs. 20,000
vi) Decrease in outstanding expenses Rs. 10,000.
Calculate Cash flow from Operating Activities.
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Answer:
1. 75,000
2. 1,00,000
3. 16,000
4. 30,000
5. 1,20,000
6.5,000
Explanation:
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