Advertisements
Advertisements
Question
Explain the operating activities on cash flow .
Solution
Operating Ratio : Operating activities are related to main business activities of enterprise giving capital principal revenue to enterprise. It excludes investing and financial activities.
Examples of cash inflow from operating activities are:
(1) Cash receipts for cash sales.
(2) Cash receipts from debtors.
(3) Cash receipts from commission
(4) Other revenue receipts.
Examples of cash outflow from operating activities are :
(1) Purchase of goods for cash.
(2) Payment to creditors
(3) Payment of operating expenses.
(4) Payment of taxes etc.
APPEARS IN
RELATED QUESTIONS
State whether following statement is true or false :
Purchase of fixed asset is operating cash flow.
What are the different cash inflows and cash outflows of investing activities?
What are the different 'Cash inflows' and 'Cash outflows' of operating activity?
What is meant by 'Cash Flow from Investing Activities'?
What is meant by 'Cash Flow from Investing Activities'?
What are the different cash inflows and cash outflows of investing activities ?
Select the appropriate answer from the alternatives given below & rewrite the completed statement :
The short term deposits are _______________.
Answer the following in brief :
What are the different cash inflows and cash outflows of operating activity?
Answer the following in brief :
What is cash equivalent?
Explain the following :
Operating activities in cash flow.
K Ltd., a manufacturing company obtained a loan of ₹ 6,00,000, advanced a loan of ₹ 1,00,000 and purchased machinery for ₹ 5,00,000. Calculate the amount of Cash Flow from financing and investing activities.
If Total sales is ₹2,50,000 and credit sales is 25% of Cash sales. The amount of credit sales is ______.
