Question

Calculate cash from operating activities from the following balances:

$$\begin{array}{ccc}\text{Particulars}& \text{31st March, 2016}& \text{31st March, 2017}\\ \text{Current Assets and Current Liabilities:}& & \\ \text{Debtors}& 80,000& 60,000\\ \text{Bills Receivable}& 7,000& 10,000\\ \text{Creditors}& 50,000& 55,000\\ \text{Bills Payable}& 8,000& 6,000\\ \text{Outstanding Expenses}& 1,000& 1,500\\ \text{Prepaid Expenses}& 1,800& 1,600\\ \text{Accrued Income}& 800& 900\\ \text{Income received in Advance}& 700& -\end{array}$$

Operating profit before working capital changes was Rs. 1,00,000.

Answer 1

Cash Flow From Opeerating Activities
for the year ended 31st March 2017
$$\begin{array}{ccc}& \text{Rs.}& \text{Rs.}\\ \text{Operating Profit before Working Capital Changes}& & 1,00,000\\ (+)\text{Decrease in Debtors}& 20,000& \\ (+)\text{Decrease in Prepaid Expenses}& 200& \\ (+)\text{Increase in Creditors}& 5,000& \\ (+)\text{Increase in Outstanding Expenses}& \text{500}& \\ (-)\text{Increase in Bills Recivable}& (3,000)& \\ (-)\text{Increase in Accrued Income}& \left(100\right)& \\ (-)\text{Decrease in Bills Payable}& (2,000)& \\ (-)\text{Decrease in Income received in Advance}& \underset{–}{\left(700\right)}& \underset{–}{19,900}\\ \text{Net Cash from Operating Activities}& & 1,19,900\end{array}$$