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

Free Accounting book Solution - Class 11 and Class 12

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 Stock 2,50,000  
Purchases 5,00,000  
  7,50,000  
Less Closing Stock 2,00,000 5,50,000
Gross Profit   4,50,000
Operating Expenses   3,00,000
Net Profit   1,50,000

Additional information :

(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    
Stock 50,000  
Trade Receivable 30,000  
Add: Increase in Current liabilities    
Outstanding Expenses 3,000 83,000
    2,58,000
Less : Increase in Current Assets    
Prepaid Expenses 5,000  
Less : Decrease in Current Liabilities    
Trade Payable 15,000 20,000
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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