Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Cash Flow Statement

Question:

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