question_answer

Batra Ltd. made a profit of Rs. 1,20,000 after considering the following during the year 31st March, 2017.

(i) Depreciation of fixed assets Rs. 30	000.
(ii) Amortisation of goodwill Rs. 20	000.
(iii) Loss on sale of machine Rs. 10	000.
(iv) Profit on sale of building Rs. 20	000.
(v) Transfer to general reserve Rs. 30	000.
(vi) Interim dividend paid Rs. 20	000.
(vii) Dividend received on investment Rs. 10	000.
(viii) Provision for taxation made Rs. 16	000.

The following additional information is also available to you.            

Particulars	31st March, 2016 Amt (Rs.)	31st March, 2017 Amt (Rs.)
Accounts Receivable	60,000	50,000
Accounts Payable	30,000	70,000
Prepaid Expenses	5,000	3,000

Calculate cash flow from operating activities.

Answer:

Cash flow from operating activities = Rs. 2,52,000