Question
Compute Cash Flow from Operating Activities from the following information:
Particulars
Net Profit after Provision for Tax nd Payment of Dividend
Provision for Tax
Final Dividend paid during the year
Depreciation
Loss on Sale of Machinery
Patents Amortised
Gain on Sale of Land
Income Tax Refund
2,15,000
45,000
50,000
25,000
10,000
30,000
70,000
30,000

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Shakti Ltd decided to redeem its 750, 12% Debentures of ₹ 100 each. The company purchased 500 Debentures at ₹ 94 per Debenture from the open market:
The remaining debentures were redeemed out of profits. The company had already made a provision for Debenture Redemption Reserve in its books.
Pass necessary Journal Entries in the books of the company for the above transactions.
From the following information calculate any two of the following ratios:
  1. Gross Profit Ratio;
  2. Working Capital Turnover Ratio and
  3. Proprietary Ratio.
Information:
Paid up capital Rs. 8,00,000
Current assets Rs. 5,00,000
Credit sales Rs. 3,00,000
Cash sales 75% of Credit sales
9% Debentures Rs. 3,40,000
Current liabilities Rs. 2,90;000, and
Cost of goods sold Rs. 6,80,000
From the following information, calculate Gross Profit Ratio:
 
 
Credit Sales
5,00,000
Decrease in Inventory
10,000
Purchases
3,00,000
Returns Outward Wages
10,000
Carriage Inwards
10,000
Rate of Credit Sale to Cash Sale.
4 : 1
Debt to Equity Ratio of a company is 0.5 : 1. Which of the following suggestions would increase, decrease or not change it:
  1. Issue of Equity Shares.
  2. Cash received from debtors.
  3. Redemption of debentures.
  4. Purchased goods on credit?
From the following information, calculate cash flows from investing activities:

Additional Information:
  1. Depreciation charged on Plant and Machinery ₹ 72,000.
  2. Plant and Machinery with a book value of ₹ 1,20,000 was sold for ₹ 75,000.
  3. Investments were purchased for ₹ 3,00,000. Some investments were sold at a loss of ₹ 10,000. Interest received on investments during the year ₹ 15,000.
  4. Land was sold at a profit of ₹ 80,000.
  1. Calculate Revenue from operations of BN Ltd. From the following information:
Current assets ₹ 8,00,000.
Quick ratio is 1.5 : 1
Current ratio is 2 : 1
Inventory turnover ratio is 6 times
Goods were sold at a profit of 25% on cost.
  1. The Operating ratio of a company is 60%. State whether ‘Purchase of goods costing ₹ 20,000’ will increase, decrease or not change the operating ratio.
Cash Flow from Operating Activities from the following information. Notes to Accounts:
Current Assets and current Liabilities:
As on 31st March, 2018 (₹)
As on April, 2017 (₹)
Inventorles
10,000
25,000
Trade receivables
25,000
20,000
Trade payables
32,500
35,000
Outstanding expenses
8,000
5,000
Prepaid expeses
5,000
3,500
The Directors of M Ltd resolved on 1st May, 2015 that 2,000 Equity Shares of ₹ 10 each, ₹ 7.50 paid be forfeited for non-payment of final call of ₹ 2.50. On 10th June, 2015, 1,800 of these shares were reissued for ₹ 6 per share. Give necessary Journal entries.
Moon Ltd. has 5,000; 10% 0f ₹ 100 each outstanding as on 31st March, 2017. These Debentures are due for redemption on 31st March, 2018. The company has a Debentures Redemption Reserve of ₹ 75,000 on that date. Determine the missing values in the following Journal entries of Moon Ltd.
A trader carries an average inventory of ₹ 40,000. His inventory turnover Ratio is 8 times. Ifhe sells goods at a profit of 20% on revenue from operations, find out his profit.