Financial Statements

Cash Flow

Easy

Which of the following will be added to operating profit before working capital changes, while preparing Cash Flow statement from indirect method?

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

While computing cash from operations under the indirect method, a decrease in current assets like inventory releases cash and is added to operating profit. Increase in trade receivables, increase in prepaid expenses, and decrease in trade payables all reduce cash and are deducted.

2024

Arrange the following in proper sequence while preparing Cash Flow Statement:

2022: 20 Aug Shift 2

From the following information of I Ltd., calculate Net Increase / Decrease in cash and cash equivalents during the year 2021-22.

i) Cash flow from Operating Activities: Rs. 2,35,000

ii) Cash used in investing Activities: Rs. 4,35,000

iii) Cash flow from financing activities: Rs. 2,35,000

2025: 13 May Shift 2

Arrange As Appear In Cash Flow Statement-

(A) Investing activities

(B) Operating activities

(D) Cash and cash equivalents

Choose the correct answer from the options given below:

2024

Calculate the resulting cash flow and state the nature of cash flow from the following information: Acquired machinery for ₹ 3,50,000 by issuing cheque.

2025: 27 May Shift 1

Which of following is not Cash Inflows from Investing Activities

2022: 16 July Shift 2

Operating Expenses include

A. Rent paid

B. Interest paid on loan

C. Selling and Distribution Expenses

D. Commission Received

E. Salaries Paid

Choose the correct answer from the options given below:

Which of the following will be added to operating profit before working capital changes, while preparing Cash Flow statement from indirect method?

Solution

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