The net profit for the year 31.3.2018 is Rs. 1,35,000 Trade Payables and Trade Receivables for 31.3.2018 is Rs. 70,000 and Rs. 31,000 respectively and Trade Payables and Trade Receivables for 31.3.2017 is Rs. 50,000 and Rs. 21,000. What is the cash flow from operating activities?

125000

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145000

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135000

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155000

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Solution

The correct option is B
145000

Cash flow from operating activities
= Net Profit + Increase in Trade Payables - Increase in Trade Receivables

= 1,35,000 + (70,000 - 50,000) - (31,000 - 21,000)

= 1,35,000 + 20,000 - 10,000

= Rs. 1,45,000

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Trade Payables for 31.3.2017 is Rs. 70,000 and for 31.3.2018 is Rs. 36,000. What is the treatment in the cash flow statement for 31.3.2018?

Trade receivables for 31.3.2018 is Rs. 50,000 and for 31.3.2017 is Rs.62,000. What is the treatment in the cash flow statement for 31.3.2018 ?

Q. Anand Ltd., arrived at a net income of Rs 5,00,000 for the year ended March 31, 2017. Depreciation for the year was Rs 2,00,000. There was a profit of Rs 50,000 on assets sold which was transferred to Statement of profit and Loss account. Trade Receivables increased during the year Rs 40,000 and Trade Payables also increased by Rs 60,000. Compute the cash flow operating activities by the indirect approach.

Prepare Trial Balance from the following information:

Capital Rs.50,000; Bank Loan Rs.20,000; Trade payables Rs.18,000; Rent outstanding Rs.4,000. Capital reserve Rs.5,000; Commission received Rs.3,000; Bad debts Rs.5,000. Plant & Machinery Rs.60,000; Goodwill Rs.16,000; Carriage inwards Rs.2,500; Carriage outwards Rs.1,500; Trade Receivables Rs. 10,000; Profit and Loss (Dr.) Rs.5,000.

(a) From the following calculate 'Trade Receivables Turnover Ratio'.

Total Revenue from operation for year Rs 8,40,000.

Cash Revenue from operation-40% of credit revenue from operation.

Closing Trade Receivable over Opening Trade Receivable by Rs 80,000. Opening Trade Receivables in 20% of credit Revenue from operation.

(b) From the following, calculate Interest Coverage Ratio.

Profit after Interest and Tax Rs 4,97,000.

Rate of Income Tax 30%.

12% Debentures Rs 6,00,000.

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The net profit for the year 31.3.2018 is Rs. 1,35,000 Trade Payables and Trade Receivables for 31.3.2018 is Rs. 70,000 and Rs. 31,000 respectively and Trade Payables and Trade Receivables for 31.3.2017 is Rs. 50,000 and Rs. 21,000. What is the cash flow from operating activities?

The correct option is B 145000 Cash flow from operating activities = Net Profit + Increase in Trade Payables - Increase in Trade Receivables = 1,35,000 + (70,000 - 50,000) - (31,000 - 21,000) = 1,35,000 + 20,000 - 10,000 = Rs. 1,45,000

The correct option is B
145000

Cash flow from operating activities
= Net Profit + Increase in Trade Payables - Increase in Trade Receivables

= 1,35,000 + (70,000 - 50,000) - (31,000 - 21,000)

= 1,35,000 + 20,000 - 10,000

= Rs. 1,45,000