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  • Abhijit Company (PG No 483) : Cash Flow From Operating Activities

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    Mary
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    The document is the statement of cash flows for Abhijit Company. It shows cash flow from operating activities of Rs. 7,000, which includes net profit before tax of Rs. 13,000 adjusted for depreciation, interest, and bad debt expenses. It also accounts for changes in inventories, receivables, prepaid expenses, and payables. Income tax paid was Rs. 5,200. Net cash from operating activities was Rs. 7,000.

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    Original Title

    CF 9

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    The document is the statement of cash flows for Abhijit Company. It shows cash flow from operating activities of Rs. 7,000, which includes net profit before tax of Rs. 13,000 adjusted for depreciation, interest, and bad debt expenses. It also accounts for changes in inventories, receivables, prepaid expenses, and payables. Income tax paid was Rs. 5,200. Net cash from operating activities was Rs. 7,000.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    6 views4 pages

    Abhijit Company (PG No 483) : Cash Flow From Operating Activities

    Uploaded by

    Mary
    The document is the statement of cash flows for Abhijit Company. It shows cash flow from operating activities of Rs. 7,000, which includes net profit before tax of Rs. 13,000 adjusted for depreciation, interest, and bad debt expenses. It also accounts for changes in inventories, receivables, prepaid expenses, and payables. Income tax paid was Rs. 5,200. Net cash from operating activities was Rs. 7,000.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    of 4

    Abhijit Company (Pg no 483)

    Statement of cash flows


    Particulars
    Cash flow from operating activities
    Net profit before income tax
    Adjustments:
    Depreciation exp
    Interest exp
    Bad debt exp
    Operating profit before working capital changes
    Increase in inventories
    Increase in trade receivables
    Decrease in prepaid expenses
    Decrease in trade payables
    Cash generated from operations
    Income tax paid for the year
    Net cash from Operating activities

    Notes :
    Income tax paid = Income tax exp + Decrease (-increase ) in tax payable
    Income tax paid = 6700 - 1500 = 5200

    Trade receivables would always include credit losses & bad debts written
    off since excluding them would mean that they were collected in due
    course
    Trade receivables on 20X5
    Add: Credit losses
    Add: Bad debts written off

    Trade receivables on 20X4


    Add: Credit losses

    Increase in trade receivables


    Abhijit Company (Pg no 483)
    Statement of cash flows
    Amount

    13000

    3100
    2700
    1500
    20300
    -2900
    -900
    800
    -5100
    12200
    -5200

    (-increase ) in tax payable

    t losses & bad debts written


    ey were collected in due

    8300
    1400
    400

    8900
    300
    3)

    Amount

    7000

    10100

    9200

    900

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