Question 18 Chapter 8 -Unimax Publication Class 12 Part 2

Question 18 Chapter 8 – Unimax Publication Class 12 Part 2 – 2021

Table of Contents

18.calculate cash from operating activities from the following information:

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Statement of profit and loss
For the year ended 31st march,2022

Particulars	Note no.	Amount ₹
I. Revenue from operating		16,70,000
ii. expenses:
Cost of materials consumed		13,30,000
Employee benefit expenses		90,000
Depreciation and amortization expenses	1	42,000
Other expenses	2	63,000
Total expenses		15,25,000
iii. profit before tax (i-ii)		1,45,000
Tax paid		15,000
iv. profit after tax		1,30,000

Notes:

(i)depreciation and amortization expense:	₹	(2) other expenses:	₹
Depreciation	32,000	Office expenses	40,000
Share issue expenses		Selling expenses	23,000
Written off	10,000
	42,000		63,000

Additional information:

Current assets and current liabilities	31-3-2021	31-3-2022
Trade receivables	65,000	63,000
Trade payable	50,000	59,000
Outstanding expenses	2,000	1,600
Prepaid expenses	900	1,200
Inventory	70,000	58,000

The solution of Question 18 Chapter 8 – Unimax Publication Class 12 Part 2-2021 : –

Cash flow from operating activities
for the year ended 31st march ,2022

		₹
Net profit before tax (note1)		1,45,000
Adjustment for non-cash and non- operating items:
Add: depreciation		32,000
Share issue expenses written off		10,000
Operating profit before working capital change		1,87,000
Add: decrease in current assets:
Trade receivable	2,000
Inventory	12,000
Add: increase in current liabilities:
Trade payable	9,000	23,000
		2,10,000
Less: income in current assets:
Prepaid expenses	300
Less: decrease in current liabilities
Outstanding expenses	400	700
Cash generated from operating activities		2,09,300
Less: tax paid		15,000
Net cash from operating activities		1,94,300