Determine cash flow operating activities from the following information.
Particulars
31 March 2023 (₹)
31 March 2022 (₹)
Inventory
80000
50000
Trade payables
40000
30000
Goodwill
100000
80000
Share capital
1500000
1000000
Debentures
500000
600000
Profit during the year was ₹370000
Options:
₹350000
₹390000
₹330000
₹230000
Correct Answer:
₹350000
Explanation:
Net Profit before Taxation and Extraordinary Items =370000 As there is not non cash expenses so the Operating Profit before working capital changes will be same 370000 – Increase in Inventories (30000) + Increase in Trade Payables 10000 Net cash from Operating Activities = 370000-30000+10000 = ₹350000