Question 15 Chapter 5 of +2-B - T.S. Grewal 12 Class

Question 15 Chapter 5 of +2-B

Table of Contents

15. Calculate Cash Flow from Operating Activities from the following information.

Particulars	(Rs)
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		Rs
Profit as per Statement of Profit and Loss		8,00,000
Add: Provision for Tax		1,10,000
Add: Proposed Dividend		1,10,000
Less: Income Tax Refund		10,000
Less: Compensation for Natural Disaster		75,000
Profit Before Tax and Extraordinary items		9,35,000
Items to be Added:		55,000
Depreciation on Plant and Machinery	1,50,000
Add: Gain on Sale of Investments	30,000	1,80,000
Items to be Deducted:		11,15,000
Profit on Sale of Land	90,000
Dividend Received	20,000	1,10,000
Operating Profit before Working Capital Adjustments		10,05,000
Add: Increase in Current Liabilities	70,000
Add: Decrease in Current Assets	40,000	1,10,000
Cash Generated from Operations before tax and Extraordinary items		11,15,000
Less: Decrease in Current Liabilities	10,000
Less: Increase in Current Assets	60,000	70,000
Cash Flow from Operating Activities after Tax		10,45,000
Less: Tax Paid		1,20,000
Cash Flow from operations after Tax		9,25,000
Add: Compensation for Natural Disaster		75,000
Add: Income Tax Refund		10,000
Net Cash Flows from Operating Activities		10,10,000