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Question

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

 

 
   

 

         

 


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


Accountancy
TS Grewal-II (2018)
Standard XII

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