Classify the Following Activities into cash Flows under (A) Operating (B) Investing (C) Financing:
(i) Cash Sales of Goods.
(ii) Income Tax paid.
(iii) Dividend Paid.
(iv) Purchase of Fixed Assets.
(v) Redemption of Debentures.
(vi) Royalty Received.
(vii) Cash paid to the Suppliers
(viii) Rental Income.

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Solution

Operating Activities :
(i) Cash Sales of Goods.
(ii) Income Tax paid.
(vi) Royalty Received.
(vii) Cash paid to the Suppliers.
Investing Activities :
(iv) Purchase of Fixed Assets.
(viii) Rental Income.
Financing Activities :
(v) Redemption of Debentures.

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Similar questions

Classify the following into (i) Operating Acivities, (ii) Investing Activities, (iii) Financing Activities and (iv) Cash Equivalents while preparing a Cash Flow Statement:
1. Cash Sales
2. Cash Received from Trade Receivables
3. Purchase of Building
4. Sale of Building
5. Issue of Share Capital or Debentures
6. Buy- back of Equity Shares
7. Dividend Paid
8. Interest paid on Debentures or Long - term Loans by (a) Finance Company (b) Non- Finance Company
9. Cash Purchases
10. Cash paid to trade payables
11. Redemption of Debentures and Preference Shares
12. Repayment of Long - term Loan
13. Office Expenses
14. Selling and Distribution Expenses
15. Manufacturing Expenses
16. Purchase of Goodwill
17. Sale of Patent
18. Purchase of Investments
19. Sale of Investments by (a) Finance Company (b) Non- Finance Company
20. Commission and Royalty received
21. Interest received on Investments by (a) Finance company (b) Non Finance company
22. Dividend received on Shares by (a) Finance Company (b) Non - Finance company
23. Rent Paid
24. Rent received if (a) Company's main business is property business (b) Other business
25. Income Tax Paid
26. Income Tax Refund received
27. Bank Balance
28. Short- term Deposits in Bank
29. Investment in Short - term or Marketable Securities

Q. Identify the transactions as belonging to (i) Operating Activities, (ii) Investing Activities, (iii) Financing Activities and (iv) Cash and Cash Equivalents:

(a) Cash Sale of Goods	(b) Cash Received against Revenue from Services rendered
(c) Cash Purchase of Goods	(d) Cash Paid against Services Taken
(e) Patents Purchased	(f) Marketable Securities
(g) Bank Overdraft	(h) Proceeds from Issue of Debentures
(i) Purchase of Shares	(j) Repayment of Long-term Loan
(k) Commission Received	(l) Redemption of Debentures
(m) Interest on Debentures	(n) Interest on Investments
(o) Income Tax Paid	(p) Income Tax Paid on Gain of Sale of Asset
(q) Cash Received from Debtors	(r) Cash Paid to Creditors.

Q. Calculate Cash Flow from Operating Activities from the following information.

Particular	31^st March 2017 (Rs)
Net Profit (Difference between Closing and Opening Balance of Surplus, i.e., Balance in Statement of Profit and Loss)	8,00,000
Final Dividend paid in the year	1,10,000
Compensation for Natural Disaster credited to Statement of Profit and Loss	75,000
Depreciation	1,50,000
Loss on Sale of Investment	30,000
Gain (Profit) on Sale of Land	90,000
Provision for Tax	1,10,000
Dividend Received	20,000
Decrease in Current Assets (Other than Cash and Cash Equivalents)	40,000
Increase in Current Liablilities	70,000
Decrease in Current Liabilities	10,000
Increase in Current Assets (Other than Cash and Cash Equivalents)	60,000
Income Tax Refund	10,000
Income Tax Paid	1,20,000

Purchase of fixed assets is ___ while calculating cash flow from investing activities.

Q. Compute Cash Flow from Operating Activities from the following information:


Particulars	₹
Net Profit after Provision for Tax and Payment of Dividend	2,15,000
Provision for Tax	45,000
Final Dividend paid during the year	50,000
Depreciation	25,000
Loss on Sale of Machinery	10,000
Patents Amortised	30,000
Gain on Sale of Land	70,000
Income Tax Refund	30,000

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Classify the Following Activities into cash Flows under (A) Operating (B) Investing (C) Financing:(i) Cash Sales of Goods.(ii) Income Tax paid.(iii) Dividend Paid.(iv) Purchase of Fixed Assets.(v) Redemption of Debentures.(vi) Royalty Received.(vii) Cash paid to the Suppliers(viii) Rental Income.

Operating Activities : (i) Cash Sales of Goods.(ii) Income Tax paid.(vi) Royalty Received.(vii) Cash paid to the Suppliers.Investing Activities : (iv) Purchase of Fixed Assets.(viii) Rental Income.Financing Activities : (v) Redemption of Debentures.

Operating Activities :
(i) Cash Sales of Goods.
(ii) Income Tax paid.
(vi) Royalty Received.
(vii) Cash paid to the Suppliers.
Investing Activities :
(iv) Purchase of Fixed Assets.
(viii) Rental Income.
Financing Activities :
(v) Redemption of Debentures.