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Question 19 Chapter 5 of +2-B – USHA Publication 12 Class

Question 19 Chapter 5 of +2-B - USHA Publication 12 Class
Question 19 Chapter 5 of +2-B - USHA Publication 12 Class

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Question 19 Chapter 5 of +2-B

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Cash Flow From Operating Activities

19. (Cash flow from operating activities) From the following information you are required to calculate cash from operating activities

Sales 10,00,000
Cost of goods sold  
Opening Stock2,50,000 
Purchases5,00,000 
 7,50,000 
Less Closing Stock2,00,0005,50,000
Gross Profit 4,50,000
Operating Expenses 3,00,000
Net Profit 1,50,000

Additional information :

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(i) Trade Receivable decreased by 30,000 during the year.

(ii) Prepaid expenses increased by 5,000 during the year.

(iii) Trade payable decreased by 15,000 during the year.

(iv) Outstanding expenses increased by 3,000 during the year.

(v) Operating expenses included depreciation of 25,000.

The solution of Question 19 Chapter 5 of +2-B: – 


Cash Flow from Operating Activities
Particulars

Net profit before Tax 1,50,000
Add: Non cash items  
Depreciation 25,000
Operating Profit before working capital changes 1,75,000
Add: Decrease in Current Assets  
Stock50,000 
Trade Receivable30,000 
Add: Increase in Current liabilities  
Outstanding Expenses3,00083,000
  2,58,000
Less : Increase in Current Assets  
Prepaid Expenses5,000 
Less : Decrease in Current Liabilities  
Trade Payable15,00020,000
Cash from Operating activities 2,38,000

Also, Check out the solved question of previous Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

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