Question 14 Chapter 8 -Unimax Publication Class 12 Part 2

Question 14 Chapter 8 – Unimax Publication Class 12 Part 2 – 2021

Table of Contents

14. ganga Yamuna Ltd. reported profit of 12,50,000 for the year ended march 31,2022 after considering the following:

depreciation on building	₹ 35,000
depreciation on plant and machinery	₹ 75,000
Depreciation on furniture	₹ 18,000
amortization of goodwill	₹ 12,000
gain on sale of machinery	₹ 20,000

The current assets and current liabilities at the beginning and at the end of the year are:

Calculate cash flow from operating activities.

The solution of Question 14 Chapter 8 – Unimax Publication Class 12 Part 2-2021 : –

Calculation of cash flow from operating activities.

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		₹
Net profit as per P & A/c		12,50,000
Add: non cash, non-operating expenses
Depreciation on building	35,000
Depreciation on plant and machinery	75,000
Depreciation on furniture	18,000
Amortization of goodwill	12,000
Loos on sale machinery	20,000	1,60,000
Operating profit before working capital charges		14,10,000
Add: increase in current liabilities
Expenses payable	3,000
Decrease in current assets
Stock	7,000	10,000
		14,20,000
Less: decrease in current liabilities increase in current assets
Accounts payable	(2,000)
Accounts receivable	(4,000)	(6,000)
Cash flow from operating activities		14,14,000

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What is the cash flow statement? why do we need to prepare?

Chapter No. 1 – Company Accounts (Share Capital)
Chapter No. 2 – Company Accounts (Issue of Debentures)
Chapter No. 3 – Company Accounts (Redemption of Debentures)
Chapter No. 4 – Financial Statements of a Company
Chapter No. 5 – Financial Statement Analysis
Chapter No. 6 – Tools of Financial Statement Analysis- Comparative and Common Size
Chapter No. 7 – Ratio Analysis
Chapter No. 8 – Cash Flow Statement