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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Calculate Cash Flow from Operating Activities from the following information:
| Particulars | Amount (₹) |
|---|---|
| Net Profit (Difference between Closing and Opening Balance of Surplus, i.e., Balance in Statement of Profit and Loss) | 8,00,000 |
| Final Dividend paid in the year | 1,10,000 |
| Compensation for Natural Disaster credited to Statement of Profit and Loss | 75,000 |
| Depreciation | 1,50,000 |
| Loss on Sale of Investment | 30,000 |
| Gain (Profit) on Sale of Land | 90,000 |
| Provision for Tax | 1,10,000 |
| Dividend Received | 20,000 |
| Decrease in Current Assets (Other than Cash and Cash Equivalents) | 40,000 |
| Increase in Current Liabilities | 70,000 |
| Decrease in Current Liabilities | 10,000 |
| Increase in Current Assets (Other than Cash and Cash Equivalents) | 60,000 |
| Income Tax Refund | 10,000 |
| Income Tax Paid | 1,20,000 |
Cash Flow from Operating Activities
| Particulars | Amount (₹) | Amount (₹) |
|---|---|---|
| Profit as per Statement of Profit and Loss | 8,00,000 | |
| Add: Provision for Tax | 1,10,000 | |
| Add: Final Dividend Paid | 1,10,000 | |
| Less: Income Tax Refund | (10,000) | |
| Less: Compensation for Natural Disaster (Extraordinary Item) | (75,000) | |
| Profit before Tax and Extraordinary Items | 9,35,000 | |
| Items to be Added: | ||
| Depreciation | 1,50,000 | |
| Loss on Sale of Investment | 30,000 | 1,80,000 |
| 11,15,000 | ||
| Items to be Deducted: | ||
| Gain on Sale of Land | (90,000) | |
| Dividend Received | (20,000) | (1,10,000) |
| Operating Profit before Working Capital Changes | 10,05,000 | |
| Add: Increase in Current Liabilities | 70,000 | |
| Add: Decrease in Current Assets | 40,000 | 1,10,000 |
| 11,15,000 | ||
| Less: Decrease in Current Liabilities | (10,000) | |
| Less: Increase in Current Assets | (60,000) | (70,000) |
| Cash Generated from Operations | 10,45,000 | |
| Less: Tax Paid | (1,20,000) | |
| Cash Flow from Operations after Tax | 9,25,000 | |
| Add: Compensation for Natural Disaster (Extraordinary Item) | 75,000 | |
| Add: Income Tax Refund | 10,000 | 85,000 |
| Net Cash Flow from Operating Activities | 10,10,000 | |
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 12 Vol 3 Chapter 5 Q.18 - Cash Flow Statement", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 5 - Cash Flow Statement.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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