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 |
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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.
Cash Flow from Operating Activities of Yamuna Limited as on March 31, 2017 |
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Particulars |
Amount Rs |
Amount Rs |
||
|
|
|
||
Net Profit earned during the year |
|
1,50,000 |
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Items to be added: |
|
|
||
|
|
Depreciation |
|
25,000 |
Operating Profit before Working Capital changes |
|
1,75,000 |
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|
Add: |
Increase in Current Liabilities |
|
|
|
|
Outstanding Expenses |
3,000 |
|
|
Add: |
Decrease in Current Assets |
|
|
|
|
Trade Receivables |
30,000 |
|
|
|
Stock |
50,000 |
83,000 |
|
Less: |
Decrease in Current Liabilities |
|
|
|
|
Trade Creditors |
(15,000) |
|
|
Less: |
Increase in Current Assets |
|
|
|
|
Prepaid Expenses |
(5,000) |
(20,000) |
Net Cash from Operations |
|
2,38,000 |
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|
|
|
Note: As per the solution, the Net Cash from Operating Activities is Rs 2,38,000, however, as per the answer given in the book is Rs 2,18,000.