Anand Ltd. arrived at a net income of Rs. 5,00,000 for the year ended March 31, 2007. Depreciation for the year was Rs. 2,00,000. There was a gain of Rs. 50,000 on assets sold which was credited to profit and loss account. Bills receivable increased during the year by Rs. 40,000 and bills payable activities by Rs. 60,000. Compute the cash flow from operating activities by the indirect approach.

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Solution

Cash Flow from Operating Activities
as on March 31, 2007
$\begin{matrix} Particulars & Amt. (Rs.) & Amt. (Rs.) Net Profit During the year & 5, 00, 000 Items to be Adjusted: (+)Depreciations & 2, 00, 000 (-)Gain on Sale of Assets & (50, 000) - -------- - & 1, 50, 000 - -------- - Operating Profit before Working Capital changes & 6, 50, 000 Changes in Working Capital: (+)Increase in Bills Payable & 60, 000 (-) Increase in Bills Receivable & (40, 000) - -------- - & 20, 000 - ------ - Net Cash from Operations & 6, 70, 000 - -------- - \end{matrix}$

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Q. Anand Ltd., arrived at a net income of Rs 5,00,000 for the year ended March 31, 2017. Depreciation for the year was Rs 2,00,000. There was a profit of Rs 50,000 on assets sold which was transferred to Statement of profit and Loss account. Trade Receivables increased during the year Rs 40,000 and Trade Payables also increased by Rs 60,000. Compute the cash flow operating activities by the indirect approach.

Q. The following is the profit and loss account of Yamuna Limited. Yamuna Limited Profit and Loss Account for the year ended March 31, 2007

\begin{matrix} Particulars & Amt. (Rs.) & Amt. (Rs.) Sales & 10, 00, 000 Cost of Goods Sold Opening Stock & 2, 50, 000 Purchase & 5, 00, 000 - -------- - 7, 50, 000 (-)Closing Stock & 2, 00, 000 - -------- - & 5, 50, 000 - -------- - Gross Profit & 4, 50, 000 Operating Expenses & 3, 00, 000 - -------- - Net Profit & 1, 50, 000 - -------- - \end{matrix}

Additional Informations:
(i) Trade debtors decrease by Rs. 30,000 during the year.
(ii) Prepaid expenses increase by Rs. 5,000 during the year.
(iii) Trade creditors decrease by Rs. 15,000 during the year.
(iv) Outstanding expenses increased by Rs. 3,000 during the year.
(v) Operating expenses included depreciation of Rs. 25,000.

Compute net cash provided by operations for the year ended March 31, 2007 by the indirect method.

The following is the statement of Profit and Loss of Yamuna Limited for the year ended March 31, 2017:
$\begin{matrix} Particulars & Note & Amount No. I. Revenue From Opeerations (Sales) & 10, 00, 000 - --------- - II. Expenses: Purchases & 5, 00, 000 Changes in Inventories (Opening Inventory - Closing Inventory) (2, 50, 000 - 2, 00, 000) & 50, 000 Other Expenses & 3, 00, 000 - -------- - Total Expenses & 8, 50, 000 - -------- - III. Profit Before Tax (I-II) & 1, 50, 000 \end{matrix}$

Additional Information:
(1) Trade Receivables decrease by Rs. 30,000 during the year.
(2) Prepaid expenses increase by Rs. 5,000 during the year.
(3) Trade payables decrease by Rs. 15,000 during the year.
(4) Outstanding expenses increased by Rs. 3,000 during the year.
(5) Operating expenses included depreciation of Rs. 25,000.

Compute net cash provided by operations for the year ended March 31,2017 by the indirect method.

The following is the Profit and Loss Account of Yamuna Limited:

Statement of Profit and Loss of Yamuna Ltd. for the Year ended March 31, 2017
Particulars		Note No.	Amount (Rs)
i)	Revenue from Operations		10,00,000
ii)	Expenses
	Cost of Material Consumed	1	50,000
	Purchase of Stock-in-trade		5,00,000
	Other Expenses	2	3,00,000
	Total Expenses		8,50,000
iii)	Profit before Tax (I – ii)		1,50,000

Additional information:

(i) Trade receivables decrease by Rs 30,000 during the year.

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

(iii) Trade creditors decrease by Rs 15,000 during the year.

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

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

Compute net cash provided by operations for the year ended March 31, 2017 by the indirect method.

Welprint Ltd. has given you the following information:

Machinery as on April 01, 2012 : Rs.50,000

Machinery as on March 31, 2013 : Rs.60,000

Accumulated Depreciation on April 01, 2012 : Rs.25,000

Accumulated Depreciation on March 31, 2013 : Rs.15,000

During the year, a Machine costing Rs 25,000 with Accumulated Depreciation of Rs. 15,000 was sold for Rs. 13,000.

Calculate cash flow from Investing Activities on the basis of the above information.

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