Question

The following is the statement of Profit and Loss of Yamuna Limited for the year ended March 31, 2017:
$$\begin{array}{ccc}\text{Particulars}& \text{Note}& \text{Amount}\\ & \text{No.}& \\ \text{I. Revenue From Opeerations (Sales)}& & \underset{–}{10,00,000}\\ \text{II. Expenses:}& & \\ \text{Purchases}& & 5,00,000\\ \text{Changes in Inventories (Opening Inventory - Closing Inventory)}& & \\ (2,50,000-2,00,000)& & 50,000\\ \text{Other Expenses}& & \underset{–}{3,00,000}\\ \text{Total Expenses}& & \underset{–}{8,50,000}\\ \text{III. Profit Before Tax (I-II)}& & 1,50,000\end{array}$$

Additional Information:
(1) Trade Receivables decrease by Rs. 30,000 during the year.
(2) Prepaid expenses increase by Rs. 5,000 during the year.
(3) Trade payables decrease by Rs. 15,000 during the year.
(4) Outstanding expenses increased by Rs. 3,000 during the year.
(5) 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.

Answer 1

Cash Flows From Operating Activities
for the year ended 31st March, 2017


$$\begin{array}{ccc}\text{Particulars}& \text{Amount (Rs.)}& \text{Amount (Rs.)}\\ \text{Net Profit Before Tax}& & 1,50,000\\ \text{Adjustments for Non - cash items:}& & \\ (+)\text{Depreciation}& & \underset{–}{25,000}\\ \text{Operating Profit before working capital Changes}& & 1,75,000\\ \text{Changes in Working Capital:}& & \\ \text{(+) Decrease in Inventory}& 50,000& \\ \text{(+) Decrease in Trade Receivables}& 30,000& \\ \text{(+) Increase in Outstanding Expenses}& \text{3,000}& \\ \text{(-) Increase in Prepaid expenses}& (5,000)& \\ \text{(-) Decrease in Trade Payables}& \underset{–}{(15,000)}& \underset{–}{63,000}\\ \text{Net Cash From Operating Activities}& & \underset{–}{2,38,000}\end{array}$$