Advertisements
Advertisements
प्रश्न
Short Answer Question
Prepare a format of cash flow from operating activities under indirect method.
उत्तर
The format of cash flow from operating activities under Indirect method is as follows:
|
Indirect Method |
||||
|
Cash Flow from Operating Activities: |
|
|
||
|
Net Profit before tax and extraordinary items |
|
*** |
||
|
|
Add: |
Non-Cash Expenses and Non-Operating Expenses |
|
|
|
|
|
Depreciation |
** |
|
|
|
|
Goodwill |
** |
|
|
|
|
Interest paid |
** |
|
|
|
|
Loss on sale of fixed assets |
** |
|
|
|
|
Foreign exchange |
** |
** |
|
|
Less: |
Non Operating Incomes. |
|
|
|
|
|
Dividend received |
** |
|
|
|
|
Profit on sale of fixed assets |
** |
|
|
|
|
Interest received |
** |
** |
|
Operating profit before working capital changes |
|
*** |
||
|
|
Add: Decrease in Current Assets |
*** |
|
|
|
|
|
Increase in Current Liabilities |
*** |
*** |
|
|
Less: Increase in Current Assets |
*** |
|
|
|
|
|
Decrease in Current Liabilities |
*** |
*** |
|
Cash generated from Operating Activities |
|
*** |
||
|
Income tax paid |
|
*** |
||
|
Cash Flow before Extraordinary Items |
|
*** |
||
|
|
Add/Less: Extra ordinary Items |
|
*** |
|
|
Net Cash Flow from Operating Activities |
|
*** |
||
Note: Preparation of Cash Flow Statement using Direct Method has been excluded from the prescribed syllabus. The format is given since the question has not specified the method explicitly. Students can refer to the direct method for the knowledge purpose.
APPEARS IN
संबंधित प्रश्न
State the primary objective of preparing a Cash Flow Statement.
Following is the Balance Sheets of Thermal Power Ltd. as at 31-3-2014
| Thermal Power Ltd Balance Sheet as at 31-3-2014 |
|||
| Particulars | Note No. |
2013-2014 Rs |
2012-2013 Rs |
|
I. Equity and Liabilities 1. Shareholder’s Funds a. Share Capital b. Reserve and Surplus 2. Non - Current Liabilities a. Long-term borrowings 3. Current Liabilities a. Trade Payables b. Short-Term Provisions |
1
|
12,00,000 3,00,000
2,40,000
1,79,000 50,000 |
11,00,000 2,00,000
1,70,000
2,04,000 77,000 |
| Total | 19,69,000 | 17,51,000 | |
|
II. Assets 1. Non – Current Assets a) Fixed Assets (i) Tangible assets (ii) Intangible b) Non – Current Investments 2. Current Assets a) Current Investments b) Inventories c) Trade Receivables d)Cash and Cash |
2 3
|
10,70,000 40,000
2,40,000 1,29,000 1,70,000 3,20,000 |
8,50,000 1,12,000
1,50,000 1,21,000 1,43,000 3,75,000 |
| Total | 19,69,000 | 17,51,000 | |
Notes to Accounts
| Note No | Particulars | 31-3-2015 | 31-3-2014 |
|
1
2
3
|
Reserve and Surplus (Surplus i.e. Balance in Statement of Profit and Loss) Tangible Assets Machinery Less: Accumulated Depreciation Intangible Assets Goodwill |
3,00,000
12,70,000 (2,00,000)
40,000 |
2,00,000
10,00,000 (1,50,000)
1,12,000 |
Additional Information:
During the year a piece of machinery, costing Rs 24,000 on which accumulated depreciation was Rs 16,000, was sold for Rs 6,000.
Prepare Cash Flow Statement
Amongst the following, 'Payment of bonus to the employees' by an insurance company is which type of activity?
Which of the following transactions will result in the flow of cash?
(1) Deposited Rs 40,000 into the bank.
(2) Withdrew cash from bank Rs 54,000.
(3) Sold marketable securities of Rs 25,000 at par.
(4) The sold machinery of the book value of Rs 50,000 at a gain of Rs 10,000
Which of the following transactions will result in the flow of cash :
(1) Deposited Rs 43,000 into the bank.
(2) Withdrew cash from bank Rs 23,000.
(3) Sale of the machinery of the book value of Rs 38,000 at a loss of Rs 3,000.
(4) Converted Rs 2,00,000, 9% debentures into equity shares.
When does the flow of cash take place'?
Short term investments are not considered while preparing cash flow statement. Why?
What is meant by a non-cash transaction? Give one example of a non-cash transaction.
Give the meaning of ‘Cash Flow’.
State with reason whether deposit of cash into Bank will result into inflow, outflow or no flow of cash.
Long Answer Question
Describe"Indirect" method of ascertaining Cash Flow from Operating Activities.
Which one is Cash Inflows from operating activities?
Classify the following activity into operating activities, investing activities, financing activities or cash activities
"Proceeds from issuance of equity share capital."
Classify the following activity into operating activities, investing activities, financing activities or cash activities ·
"Proceeds from long-term borrowings."
From the following information, calculate cash flows from financing activities:
Long-term Loans Rs. 2,09,000 Rs. 2,50,000
During the year, the company repaid a loan of Rs. 1,00,000.
Dividend received by other than financial enterprise is shown in cash flow statement under ______.
In case of financial enterprises, the cash flow resulting from interest and dividend received and interest paid should be classified as cash flow from ______.
Interest collected by an automobile company selling a car on an instalment basis will be classified as:
State whether the following transaction will result in inflow, outflow or no flow of cash while preparing cash flow statement:
Issued bonus shares ₹ 5,00,000.
From the following information of Hoopla Ltd., you are required to prepare a Cash Flow Statement (as per AS 3) for the year 2021 - 22.
| Particulars | (₹) | |
| (i) | Profit for the year 2021-22, before considering dividend and tax but after taking into account the following items: |
15,80,000 |
| (a) Depreciation on Property, Plant & Equipment | 5,50,000 | |
| (b) Interest Payable on Bank Loan | 3,80,000 | |
| (c) Profit on sale of investments, the book value of which was ₹ 2,20 000. |
1,00,000 | |
| (ii) | During the year 2021-22: | |
| (a) The company | ||
| • Paid Tax (which was provided in 2020 - 21) | 4,40,000 | |
| • Issued 66,000 equity shares of ₹ 10 each | 6,60,000 | |
| • Repaid Bank Loan | 15,00,000 | |
| • Paid interest on Bank Loan | 3,00,000 | |
| • Paid Dividend | 5,00,000 | |
| (b) Trade payables decreased by | 10,000 | |
| (c) Cash at bank increased from ₹ 60,000 on 1st April, 2021 to ₹ 7,00,000 on 31st March, 2022. |
