MENU
Question -

Anand Ltd., arrived at a net income of ₹ 5, 00,000 for the year ended March 31, 2017. Depreciation for the year was ₹ 2, 00,000. There was a profit of ₹ 50,000 on assets sold which was transferred to Statement of profit and Loss account. Trade Receivables increased during the year ₹ 40,000 and Trade Payables also increased by ₹ 60,000. Compute the cash flow operating activities by the indirect approach.



Answer -


Cash Flow from Operating Activities as on March 31, 2017

Particulars

Amount

(₹)

Amount

(₹)

Net Profit during the year

5,00,000

Items to be adjusted:

Add: Depreciation

2,00,000

Less: Gain on sale of assets

(50,000)

1,50,000

Operating Profit before Working Capital changes

6,50,000

Add: Increase in Trade Payables

60,000

Less: Increase in Trade Receivables

(40,000)

20,000

Net Cash from Operations

6,70,000

Comment(S)

Show all Coment

Leave a Comment

Free - Previous Years Question Papers
Any questions? Ask us!
×