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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Solution

Cash Flow from Operating Activities

Particulars

Amount

(Rs)

Amount

(Rs)

Net Profit after Provision for Tax and Proposed Dividend

2,15,000

Add: Provision for Tax

45,000

Add: Proposed Dividend

50,000

Profit Before Taxation

3,10,000

Items to be Added:

Depreciation

25,000

Loss on Sale of Machinery

10,000

Patents Amortised

30,000

65,000

3,75,000

Items to be Deducted:

Income Tax Refund

(30,000)

Gain on Sale of Land

(70,000)

(1,00,000)

Operating Profit before Working Capital Changes

2,75,000

Less: Net Tax Paid (45,000 – 30,000)

(15,000)

Net Cash Flows from Operating Activities

2,60,000

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Gain (Profit) on Sale of Land	90,000
Provision for Tax	1,10,000
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Decrease in Current Assets (Other than Cash and Cash Equivalents)	40,000
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Q. Grand Hospitality Ltd., reported Net Profit after Tax of ₹ 6,40,000 for the year ended 31st March, 2019. The relevant extract from Balance Sheet as at 31st March, 2019 is:


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Particulars	(₹)
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Q. Compute Cash Flow from Operating Activities from the following:


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Surplus, i.e., Balance in Statement of Profit and Loss	65,000	60,000
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Bills Receivable	1,03,000	62,000
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Provision for Depreciation	30,000	20,000
Outstanding Expenses	12,000	30,000
Goodwill	70,000	80,000

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Prepare Comparative Income Statement from the following information:

Particulars	2016-17 Rs.	2015-16 Rs.
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Wages (office)	10,000	5,000
Manufacturing Expenses	50,000	20,000
Stock adjustment	(60,000)	30,000
Cash purchases	80,000	60,000
Credit purchases	60,000	20,000
Returns inward	8,000	4,000
Gross profit	(30,000)	90,000
Carriage outward	20,000	10,000
Machinery	3,00,000	2,00,000
Charge 10% depreciation on machinery	10,000	5,000
Interest on short-term loans	20,000	20,000
10% debentures	20,000	10,000
Profit on sale of furniture	20,000	10,000
Loss on sale of office car	90,000	60,000
Tax rate	40%	50%

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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

Cash Flow from Operating Activities
	Particulars	Amount (Rs)	Amount (Rs)
	Net Profit after Provision for Tax and Proposed Dividend		2,15,000
	Add: Provision for Tax		45,000
	Add: Proposed Dividend		50,000
	Profit Before Taxation		3,10,000
	Items to be Added:
	Depreciation	25,000
	Loss on Sale of Machinery	10,000
	Patents Amortised	30,000	65,000
			3,75,000
	Items to be Deducted:
	Income Tax Refund	(30,000)
	Gain on Sale of Land	(70,000)	(1,00,000)
	Operating Profit before Working Capital Changes		2,75,000
	Less: Net Tax Paid (45,000 – 30,000)		(15,000)
	Net Cash Flows from Operating Activities		2,60,000