Which of the following will be added to operating profit before working capital changes, while preparing Cash Flow statement from indirect method? Option 1: Increase in Trade Receivable by Rs. 80,000 Option 2: Decrease in Inventory by Rs. 50,000 Option 3: Increase in Prepaid Expenses by Rs. 30,000 Option 4: Decrease in Trade Payable by Rs. 20,000

The answer is 'Decrease in Inventory by Rs. 50,000'. View full solution:

Which of the following will be added to operating profit before working capital chan>=s, whi<= preparing Cash Flow statement from indirect method?

Increase in Trade Receivab<= by Rs. 80,000

Decrease in Trade Payab<= by Rs. 20,000

CUET Accountancy 2023 29 May Shift 2

Financial Statements

Easy

Increase in Trade Receivable by Rs. 80,000

Decrease in Inventory by Rs. 50,000

Increase in Prepaid Expenses by Rs. 30,000

Decrease in Trade Payable by Rs. 20,000

✅ Correct Option: 2

Related questions:

15 July Shift 2

Purchase of goodwill is considered in _______ activity while making Cash Flow Statement.

14 May Shift 2

Match List-I with List-II

List-I	List-II
(A) Operating activity	(I) Bank
(B) Investing activity	(II) Redemption of preference shares
(C) Financing activity	(III) Purchase of machinery
(D) Cash equivalents	(IV) Cash receipt from trade receivables.

Choose the correct answer from the options given below:

20 July Shift 1

Calculate the amount of cash generated from operations from the following information :

Particulars	(Rs.)
Profit before change in working capital	2,00,000
Depreciation on plant and Machinery	20,000
Gain on sale of Building	10,000
Increase in trade Paybles	4,500
Increase in trade Receivables	3,500
Interest paid	2,225
Decrease in Inventories	3,750
Redemption of 10% Debentures	80,000